Top reasons for Bamburgh lease extension

Main reasons to commence your Bamburgh lease extension today:

Increase your lease and increase your Bamburgh property value

Chances are that if you own a flat in Bamburgh you actually own a long leasehold interest over your property

An extended lease is almost the same value as a freehold

Leasehold premises in Bamburgh with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.

Lenders will not issue a mortgage on a short lease

Many banks and building societies will not lend on a lease with less than 70 years unexpired - although this varies between mortgage companies. A buyer will undoubtedly find it difficult to obtain a mortgage and this could result in your Bamburgh property becoming difficult to dispose of or refinance.

What makes us experts in Bamburgh lease extensions?

Retaining our service gives you better control over the value of your Bamburgh leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Bamburgh Lease Extension Case Studies:

Naomi, Bamburgh, Northumberland,

Following protracted discussions with the freeholder of her two bedroom flat in Bamburgh, Naomi initiated the lease extension process just as her lease was nearing the all-important eighty-year mark. The transaction was finalised in May 2006. The freeholder’s charges were negotiated to under 700 pounds.

Bamburgh case:

In 2010 we were approached by Mr George King who, having bought a one bedroom flat in Bamburgh in September 2004. The dilemma was if we could approximate the price would be to prolong the lease by ninety years. Identical properties in Bamburgh with an extended lease were in the region of £264,000. The mid-range ground rent payable was £60 billed yearly. The lease finished in 2079. Given that there were 53 years left we calculated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 plus professional charges.

Bamburgh case:

In 2009 we were phoned by Mr Alex Sánchez who, having acquired a garden apartment in Bamburgh in September 2001. The question was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Similar properties in Bamburgh with an extended lease were valued about £225,400. The mid-range amount of ground rent was £45 billed yearly. The lease expired on 8 June 2090. Considering the 64 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of professional charges.