Top reasons for Bacup lease extension

Main reasons to commence your Bacup lease extension today:

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

Bacup 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 the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Bacup residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bacup you would be well advised to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur 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 residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not lend on a short lease

Most banks and building societies require a lengthy amount of time left on a leasehold residence before they will consider providing a mortgage on it. Regardless of whether you require a mortgage, you should bear in mind that it is probable that someone wanting to purchase your property in the future might well do, so if they are not able to get a mortgage, then the market price of the property will likely suffer. In the last decade most mortgage lenders have increased the required minimum lease length that they are prepared to lend on

Why use us for your lease extension in Bacup?

Regardless of whether you are a tenant or a freeholder in Bacup,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bacup valuers.

Bacup Lease Extension Example Cases:

Mollie, Bacup, Lancashire,

Subsequent to protracted correspondence with the freeholder of her first floor flat in Bacup, Mollie started the lease extension process as the eighty year threshold was swiftly advancing. The transaction completed in March 2010. The landlord’s costs were negotiated to a tad over 550 pounds.

Bacup case:

Last Autumn we were called by Dr K Thomas , who took over the lease of a newly refurbished flat in Bacup in November 2004. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Identical homes in Bacup with an extended lease were in the region of £245,000. The mid-range amount of ground rent was £50 collected monthly. The lease concluded in 2093. Given that there were 68 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.

Bacup case:

In 2010 we were contacted by Mrs Alexandra Hill who, having took over the lease of a one bedroom apartment in Bacup in March 2011. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparable premises in Bacup with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £55 collected quarterly. The lease elapsed in 2104. Given that there were 79 years remaining we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.