Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Burscough. Clearly, the period of lease remaining shortens over time. This may pass by relatively unnoticed when the residence needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Burscough have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. Do give careful consideration before putting off your Burscough lease extension. Holding off the cost now simply increases the price you will eventually incur for a lease extension
Leasehold properties in Burscough with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Burscough can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Burscough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joseph was the the leasehold proprietor of a studio flat in Burscough on the market with a lease of a little over fifty eight years unexpired. Joseph informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2014 we were called by Ms Daisy Parker who, having acquired a ground floor flat in Burscough in April 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Identical premises in Burscough with a long lease were valued around £265,000. The average amount of ground rent was £50 collected monthly. The lease ended in 2099. Taking into account 73 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
Mr and Mrs. Y Anderson acquired a studio apartment in Burscough in November 2008. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable residencies in Burscough with a long lease were in the region of £264,000. The average amount of ground rent was £60 collected per annum. The lease finished in 2079. Taking into account 53 years outstanding we calculated the premium to the landlord to extend the lease to be within £37,100 and £42,800 plus fees.