Burslem leases on domestic deteriorating in value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Burslem will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some cases you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Burslem,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Burslem valuers.
Jonathan owned a 2 bedroom apartment in Burslem on the market with a lease of a little over 59 years outstanding. Jonathan informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jonathan to exercise his statutory right. Jonathan procured expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
In 2013 we were called by Mr and Mrs. H Fournier who, having moved into a purpose-built apartment in Burslem in July 2000. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative premises in Burslem with an extended lease were in the region of £264,000. The average ground rent payable was £60 billed monthly. The lease ran out in 2078. Considering the 53 years unexpired we calculated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 plus legals.
Last month we were approach by Mr and Mrs. S Cook , who acquired a garden flat in Burslem in July 2010. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Comparative properties in Burslem with an extended lease were in the region of £225,400. The mid-range ground rent payable was £45 billed annually. The lease finished in 2089. Taking into account 64 years left we estimated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 not including fees.