Why you should commence your Bishopston lease extension

Main reasons to start your Bishopston lease extension today:

Increase your lease and increase your Bishopston property value

Bishopston leases on domestic properties are gradually losing value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Bishopston will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lenders may decide not to finance a property on a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to become nervous at around 75 years. This may be problematic once you need to market or remortgage your property as it will be effectively unmortgageable. You might not have an imminent desire to sell but when you do your purchaser must wait two years before they can initiate the legal procedures for a lease extension.

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

Irrespective of whether you are a tenant or a freeholder in Bishopston,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bishopston valuers.

Bishopston Lease Extension Case Studies:

Andrew, Bishopston, Bristol

During the course of the last few months Andrew, started to get close to the 80-year threshold with the lease on his garden flat in Bishopston. In buying his home 18 years ago, the unexpired term was of minimal bearing. by good luck, it dawned on him that he needed to take action soon on a lease extension. Andrew arranged for a lease extension just under the wire last September. Andrew and the freeholder via the management company ultimately settled on the final figure of £6,000 . If the lease had fallen lower than eighty years, the sum would have escalated by a minimum £1,125.

Bishopston case:

In 2011 we were called by Mr and Mrs. T Moreau who, having bought a newly refurbished flat in Bishopston in January 2005. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Bishopston with an extended lease were in the region of £250,000. The average amount of ground rent was £50 invoiced annually. The lease concluded on 5 February 2096. Given that there were 70 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.

Bishopston case:

Dr Oscar Moreau bought a basement apartment in Bishopston in October 1998. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Similar flats in Bishopston with a long lease were valued around £246,800. The average amount of ground rent was £60 collected per annum. The lease expired in 2076. Having 50 years left we estimated the premium to the landlord for the lease extension to be between £44,700 and £51,600 not including fees.