Top reasons for Bishopston lease extension

Top reasons for lease extension now:

Increase your lease and increase your Bishopston property value

As the length of the unexpired term of a Bishopston domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of 125 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Bishopston will qualify for this right; however a lawyer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

Leasehold premises in Bishopston with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Mortgage companies are making their criteria more stringent and many now want flats to have a minimum of 60 if not 70 years left once the mortgage has expired. As many flats in Bishopston were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they wish to obtain a mortgage.

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

The conveyancers that we work with handle 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 lawyer we work with provide it.

Bishopston Lease Extension Example Cases:

Rachael, Bishopston, Bristol,

In the wake of 6 months of protracted negotiations with the freeholder of her garden apartment in Bishopston, Rachael started the lease extension process as the 80 year mark was quickly coming. The legal work was finalised in August 2006. The freeholder’s fees were restricted to less than 600 GBP.

Bishopston case:

Last Winter we were phoned by Dr E Smith , who purchased a one bedroom flat in Bishopston in August 1996. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparative premises in Bishopston with 100 year plus lease were valued about £235,200. The mid-range amount of ground rent was £45 billed yearly. The lease finished on 1 November 2092. Taking into account 66 years as a residual term we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.

Bishopston case:

In 2014 we were called by Mr and Mrs. I Watson who, having bought a basement apartment in Bishopston in October 2010. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparable premises in Bishopston with a long lease were valued about £275,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease end date was on 5 February 2103. Having 77 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.