Top reasons for Bletchley lease extension

Top reasons for lease extension now:

Increase your lease and increase your Bletchley property value

Bletchley 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 your lease gets more expensive. Most owners of residential leasehold property in Bletchley enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Bletchley you really ought to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Lenders may not issue a mortgage on a short lease

The trend since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically banks were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

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

The lawyers that we work with handle Bletchley 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.

Bletchley Lease Extension Example Cases:

Edward, Bletchley, Buckinghamshire,

Edward was the the leasehold owner of a 2 bedroom flat in Bletchley on the market with a lease of just over 72 years left. Edward on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be due on a lease extension were Edward to invoke his statutory right. Edward procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.

Bletchley case:

In 2012 we were called by Mr and Mrs. H Bennett who, having was assigned a lease of a basement apartment in Bletchley in September 2005. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative premises in Bletchley with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 billed yearly. The lease expired in 2102. Taking into account 76 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.

Bletchley case:

In 2011 we were called by Mr and Mrs. J Bonnet who, having took over the lease of a recently refurbished apartment in Bletchley in August 1999. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar premises in Bletchley with an extended lease were worth £176,200. The mid-range ground rent payable was £65 collected annually. The lease lapsed on 4 June 2082. Having 56 years left we approximated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including legals.