Top reasons for Bootle lease extension

Top reasons for lease extension now:

A Bootle lease depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Bootle. Inevitably, the term of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the property has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Bootle have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please give careful attention before putting off your Bootle lease extension. Putting off the cost now only increases the price you will ultimately have to pay for a lease extension

An extended lease has roughly the same value as a freehold

Leasehold properties in Bootle with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies will not lend with a short lease

Banks and Building Societies have set criteria when lending monies secured on leasehold property. Some will simply not lend at all once the remaining lease term falls below a specified unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired below seventy years as acceptable security. As well as this being important when selling, it is also relevant where you are seeking to remortgage your Bootle property.

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

Irrespective of whether you are a tenant or a landlord in Bootle,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bootle valuers.

Bootle Lease Extension Case Summaries:

Ryan, Bootle, Merseyside

Twenty four months ago Ryan, started to get close to the 80-year threshold with the lease on his leasehold flat in Bootle. In buying his flat twenty years previously, the length of the lease was of minimal significance. Fortunately, he became aware that he needed to take action soon on Extending the lease. Ryan arranged for a lease extension just in the nick of time in September. Ryan and the freeholder ultimately settled on sum of £5,000 . If he not met the deadline, the premium would have escalated by a minimum £1,025.

Bootle case:

Last Autumn we were approach by Dr L Campbell , who was assigned a lease of a one bedroom apartment in Bootle in July 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Bootle with an extended lease were worth £166,400. The average ground rent payable was £60 collected yearly. The lease expired in 2080. Having 54 years unexpired we calculated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of legals.

Bootle case:

In 2010 we were approached by Mr Thomas Hernández who, having took over the lease of a garden apartment in Bootle in July 2007. We are asked if we could estimate the price could be to extend the lease by ninety years. Identical residencies in Bootle with 100 year plus lease were valued about £227,800. The average ground rent payable was £45 billed every twelve months. The lease ran out on 6 August 2091. Given that there were 65 years outstanding we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.