Main reasons to commence your Burslem lease extension

Top reasons for lease extension now:

A Burslem lease depreciates with the years remaining on the lease.

Burslem leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Burslem residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Burslem you would be well advised to investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

Burslem property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Burslem with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.

Lenders will not finance a property on a short lease

Lenders do not like short residential leases. You most probably experience problems if you want to sell your flat in Burslem if the remaining lease term is under the criteria set by most banks and building societies. Different mortgage companies have varying requirements but on the whole they are looking for a minimum remaining lease term of seventy years.

Get in touch with one of our Burslem lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with undertake Burslem lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Burslem Lease Extension Example Cases:

Tommy, Burslem, Staffordshire,

Tommy was the the leasehold owner of a 2 bedroom apartment in Burslem being sold with a lease of just over fifty eight years outstanding. Tommy informally contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were Tommy to invoke his statutory right. Tommy procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.

Burslem case:

Last Winter we were called by Dr Danielle Nguyen , who completed a garden flat in Burslem in June 2005. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable premises in Burslem with an extended lease were valued around £210,600. The average ground rent payable was £45 billed annually. The lease concluded in 2088. Having 62 years unexpired we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus costs.

Burslem case:

Dr P Lambert bought a one bedroom apartment in Burslem in March 2007. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparative residencies in Burslem with an extended lease were valued around £265,000. The average ground rent payable was £50 collected annually. The lease lapsed on 17 June 2099. Given that there were 73 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.