Main reasons to commence your Bridlington lease extension

Main reasons to start your Bridlington lease extension today:

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

The closer a domestic lease in Bridlington nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over 99 years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner than later. The majority of flat owners in Bridlington will meet the qualifying criteria; that being said a conveyancer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

Bridlington property with a lease extension has roughly the same value as a freehold

Leasehold premises in Bridlington with more than one hundred years outstanding 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 upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.

Mortgage lenders will not grant a mortgage on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

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

Lease extensions in Bridlington can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Bridlington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Bridlington Lease Extension Case Summaries:

John, Bridlington, East Yorkshire

In recent months John, came dangerously close to the 80-year threshold with the lease on his leasehold flat in Bridlington. In buying his home twenty years ago, the length of the lease was of minimal concern. Fortunately, he realised he would soon be paying an inflated amount for Extending the lease. John was able to extend his lease at the eleventh hour in June. John and the freeholder via the management company ultimately settled on an amount of £5,000 . If the lease had descended below 80 years, the premium would have increased by at least £975.

Bridlington case:

Last Summer we were approach by Mr and Mrs. L Garcia , who moved into a one bedroom apartment in Bridlington in August 1995. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparative flats in Bridlington with 100 year plus lease were valued about £275,000. The mid-range ground rent payable was £65 invoiced monthly. The lease lapsed on 14 January 2094. Taking into account 68 years left we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.

Bridlington case:

In 2013 we were e-mailed by Mr and Mrs. J Gray who, having owned a first floor apartment in Bridlington in February 1997. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparable flats in Bridlington with a long lease were valued about £208,600. The mid-range amount of ground rent was £60 collected monthly. The lease ran out in 2083. Considering the 57 years remaining we approximated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of expenses.