Main reasons to commence your Bamburgh lease extension

Main reasons to start your Bamburgh lease extension today:

Increase your lease and increase your Bamburgh property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Bamburgh. Clearly, the period of lease remaining shortens as time goes by. This is often ignored and only becomes a problem when the flat or house needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Bamburgh have the right to extend the lease for an additional ninety years in accordance with legislation. Do give due deliberation before putting off your Bamburgh lease extension. Holding off that expense now only increases the price you will eventually incur to extend your lease

An extended lease is almost the same value as a freehold

Leasehold premises in Bamburgh with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not lend with a short lease

Most banks and building societies will be unwilling to grant a mortgage on a lease with less than 70 years remaining - although this varies from lender to lender. A purchaser will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your Bamburgh property being difficult to dispose of or refinance.

Why use us for your lease extension in Bamburgh?

Retaining our service gives you enhanced 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 conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Bamburgh Lease Extension Example Cases:

Aaron, Bamburgh, Northumberland,

Aaron owned a studio apartment in Bamburgh on the market with a lease of fraction over 59 years left. Aaron on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Aaron to exercise his statutory right. Aaron obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.

Bamburgh case:

Last month we were approach by Mr Harvey Mitchell , who owned a first floor flat in Bamburgh in April 2006. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Bamburgh with a long lease were worth £260,000. The mid-range ground rent payable was £50 billed quarterly. The lease lapsed in 2098. Taking into account 72 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.

Bamburgh case:

Dr Samantha Bernard was assigned a lease of a one bedroom flat in Bamburgh in April 2003. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Identical flats in Bamburgh with 100 year plus lease were valued about £256,600. The mid-range ground rent payable was £60 collected yearly. The lease termination date was in 2078. Having 52 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 plus professional charges.