Top reasons for Bletchley lease extension

Why you should start your Bletchley lease extension today:

A Bletchley leasehold property depreciates with the years remaining on the lease.

The closer a residential lease in Bletchley nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 99 years to run then this decrease may be negligible however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. Many flat owners in Bletchley will meet the qualifying criteria; nevertheless a lawyer can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.

Bletchley property with a lease extension is almost the same value as a freehold

Leasehold properties in Bletchley with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.

Lenders may decide not to grant a mortgage on a short lease

The trend since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. Historically mortgage companies were content with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Bletchley lease extensions?

Irrespective of whether you are a tenant or a landlord in Bletchley,the lease extension lawyers 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 Bletchley valuers.

Bletchley Lease Extension Example Cases:

William, Bletchley, Buckinghamshire,

William was the the leasehold proprietor of a high value apartment in Bletchley being marketed with a lease of just over fifty eight years remaining. William on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be payable on a lease extension were William to exercise his statutory right. William procured expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.

Bletchley case:

In 2014 we were approached by Mr N Hernández who, having moved into a first floor apartment in Bletchley in November 2010. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Bletchley with a long lease were in the region of £176,200. The average ground rent payable was £65 billed yearly. The lease concluded in 2082. Given that there were 56 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 not including costs.

Bletchley case:

Last year we were contacted by Dr A González , who bought a first floor apartment in Bletchley in January 2008. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical residencies in Bletchley with 100 year plus lease were worth £242,600. The mid-range ground rent payable was £45 billed every twelve months. The lease expired on 27 August 2093. Considering the 67 years outstanding we estimated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 not including fees.