Why you should commence your Bearsted lease extension

Why you should start your Bearsted lease extension today:

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

Bearsted 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 allowing qualifying Bearsted residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bearsted you must check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part 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

Leasehold premises in Bearsted with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lenders may decide not to finance a property with a short lease

Many mortgage companies will be unwilling to grant a mortgage on a lease with less than seventy years remaining - although this varies between mortgage companies. A buyer will undoubtedly find it difficult in obtaining a mortgage and this will result in your Bearsted property becoming difficult to dispose of or to obtain finance on.

Why use us for your lease extension in Bearsted?

Regardless of whether you are a tenant or a freeholder in Bearsted,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 Bearsted valuers.

Bearsted Lease Extension Example Cases:

Caleb, Bearsted, Kent,

Caleb owned a high value flat in Bearsted on the market with a lease of a few days over sixty years remaining. Caleb on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Caleb to exercise his statutory right. Caleb obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.

Bearsted case:

Mr and Mrs. W Garcia was assigned a lease of a basement flat in Bearsted in November 2008. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Similar flats in Bearsted with a long lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease expired on 26 March 2102. Taking into account 76 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.

Bearsted case:

Last Christmas we were approach by Mr W Martínez , who moved into a basement flat in Bearsted in July 2002. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Bearsted with an extended lease were valued about £176,200. The average amount of ground rent was £65 invoiced annually. The lease concluded on 13 April 2082. Considering the 56 years remaining we calculated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of professional charges.