Bury leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease dips below eighty years - otherwise a higher amount will be payable. Flat owners in Bury will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In some cases you may not be entitled. There are also strict deadlines and formalities to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a freeholder in Bury,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 in-depth market knowledge and the close ties they enjoy with Bury valuers.
Henry owned a conversion apartment in Bury on the market with a lease of a few days over 59 years left. Henry on an informal basis approached his landlord being a well known Manchester-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 on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Henry to exercise his statutory right. Henry obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
In 2014 we were approached by Mr and Mrs. I Petit who, having purchased a one bedroom apartment in Bury in March 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparable properties in Bury with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 billed yearly. The lease expired on 20 May 2102. Considering the 76 years remaining we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.
In 2011 we were e-mailed by Dr Dylan Moore who, having took over the lease of a garden apartment in Bury in March 2012. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparative premises in Bury with 100 year plus lease were valued about £252,800. The average amount of ground rent was £65 collected quarterly. The lease ended on 22 February 2091. Given that there were 65 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of legals.