Main reasons to commence your Bishopston lease extension

Main reasons to commence your Bishopston lease extension today:

Increase your lease and increase your Bishopston property value

The market value of a leasehold property in Bishopston depends on how long the lease has left to run. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that a lease extension can be concluded prior to the 80 year mark. Current legislation entitles Bishopston qualifying lessees to an additional term of ninety years on top of the unexpired term, at a nominal rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

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

Mortgage lenders will not finance a property with a short lease

Lenders are really clamping down as regards to homes in Bishopston with short leases. For instance you might discover that their lending requirements are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you needed to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus narrowing your market.

What makes us experts in Bishopston lease extensions?

The conveyancing solicitors that we work with procure Bishopston 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 conveyancer we work with provide it.

Bishopston Lease Extension Example Cases:

Sophie, Bishopston, Bristol,

Following lengthy correspondence with the landlord of her leasehold flat in Bishopston, Sophie initiated the lease extension process as the eighty year deadline was rapidly coming. The lease extension completed in October 2005. The freeholder’s fees were kept to an absolute minimum.

Bishopston case:

Last Christmas we were approach by Ms Sian Moreau , who moved into a purpose-built flat in Bishopston in January 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative properties in Bishopston with 100 year plus lease were in the region of £168,800. The average ground rent payable was £60 collected monthly. The lease ran out on 3 July 2081. Taking into account 55 years unexpired we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of costs.

Bishopston case:

In 2013 we were called by Mrs Zoe Cook who, having moved into a one bedroom flat in Bishopston in May 2001. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable residencies in Bishopston with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 collected every twelve months. The lease expired on 24 June 2092. Having 66 years remaining we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.