It’s an underpublicised truth that a Burwell residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Burwell property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be due. Most flat owners in Burwell will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Lease extensions in Burwell can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.
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 in-depth market knowledge dealing with Burwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Caleb owned a 2 bedroom flat in Burwell on the market with a lease of a little over sixty years unexpired. Caleb on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Caleb to exercise his statutory right. Caleb procured expert legal guidance and secured an acceptable resolution informally and sell the property.
Last November we were approach by Mr Aaron François , who moved into a purpose-built apartment in Burwell in February 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Burwell with an extended lease were in the region of £206,200. The average amount of ground rent was £55 collected every twelve months. The lease lapsed on 17 February 2082. Having 56 years remaining we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.
Dr Rory Allen acquired a purpose-built apartment in Burwell in August 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Identical flats in Burwell with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 collected quarterly. The lease terminated in 2102. Given that there were 76 years remaining we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.