Why you should start your Bawtry lease extension

Why you should start your Bawtry lease extension today:

A Bawtry leasehold property depreciates with the years remaining on the lease.

The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Bawtry have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. Do give careful consideration before delaying your Bawtry lease extension. Putting off that expense today simply increases the amount you will eventually be required to pay to extend the lease.

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

Leasehold residencies in Bawtry with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lenders may not finance a property with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past mortgage companies were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Bawtry lease extensions?

The conveyancing solicitors that we work with procure Bawtry 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 conveyancer we work with provide it.

Bawtry Lease Extension Example Cases:

Jack, Bawtry, South Yorkshire

Two years ago Jack, started to get close to the 80-year mark with the lease on his leasehold flat in Bawtry. In buying his flat two decades ago, the lease term was of minimal concern. Luckily, he recognised he needed to take steps soon on a lease extension. Jack extended the lease just in the nick of time in March. Jack and the freeholder via the managing agents subsequently settled on the final figure of £5,000 . If he failed to meet the deadline, the sum would have escalated by at least £900.

Bawtry case:

Mrs R Miller was assigned a lease of a one bedroom flat in Bawtry in January 2012. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical flats in Bawtry with 100 year plus lease were valued around £290,000. The average ground rent payable was £45 collected every twelve months. The lease terminated in 2099. Given that there were 73 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.

Bawtry case:

Dr Y Wood bought a basement flat in Bawtry in January 2002. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable residencies in Bawtry with an extended lease were worth £240,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ended in 2088. Having 62 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of legals.