Why you should commence your Bacup lease extension

Top reasons for lease extension now:

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

The closer a residential lease in Bacup nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond 99 years remaining then this decrease may be fractional 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 increase sharply the cost. It is the main reason why you should extend the lease without delay. The majority of flat owners in Bacup will qualify for this right; that being said a conveyancing solicitor can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

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

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years ahead.

Lenders may decide not to lend on a short lease

Most banks have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly below 75 years as they are regarded as insufficient security.

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

The lawyers that we work with procure Bacup 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.

Bacup Lease Extension Example Cases:

Lucy, Bacup, Lancashire,

In the wake of eight months of unsuccessful correspondence with the landlord of her ground floor apartment in Bacup, Lucy initiated the lease extension process as the 80 year mark was fast advancing. The lease extension was finalised in May 2014. The landlord’s costs were kept to an absolute minimum.

Bacup case:

Mr and Mrs. E Garcia purchased a ground floor apartment in Bacup in April 2010. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable residencies in Bacup with an extended lease were worth £183,600. The average ground rent payable was £65 invoiced quarterly. The lease expiry date was on 14 September 2083. Given that there were 57 years left we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus professional charges.

Bacup case:

Ms Rhiannon Peterson completed a one bedroom flat in Bacup in August 1998. We are asked if we could approximate the price would be to prolong the lease by ninety years. Similar flats in Bacup with an extended lease were valued about £245,000. The mid-range ground rent payable was £50 collected per annum. The lease finished in 2094. Taking into account 68 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.