Bury leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Bury residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Bury you would be well advised to check if your lease has between 70 and 90 years left. There are compelling reasons why a Bury flat owner with a lease having around 80 years left should take action to make sure that a lease extension is effected without delay
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland |
Using our service gives you enhanced control over the value of your Bury leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Arthur was the the leasehold owner of a 2 bedroom apartment in Bury being marketed with a lease of a few days over 72 years outstanding. Arthur 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 freeholder indicated a willingness to extend 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 payable on a lease extension were Arthur to exercise his statutory right. Arthur obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2009 we were phoned by Mr and Mrs. V Wright who, having took over the lease of a purpose-built flat in Bury in October 2011. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparative properties in Bury with a long lease were in the region of £208,600. The average ground rent payable was £60 invoiced every twelve months. The lease ran out in 2083. Taking into account 57 years left we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including professional charges.
Mr Henry Brooks bought a ground floor apartment in Bury in July 2010. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar properties in Bury with 100 year plus lease were valued about £200,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease finished on 5 March 2103. Considering the 77 years remaining we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.