Why you should commence your Bedford lease extension

Main reasons to start your Bedford lease extension today:

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

The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Bedford may extend the lease for a further ninety years under Leasehold Reform legislation. Do give careful consideration before delaying your Bedford lease extension. Putting off that expense today simply escalates the amount you will ultimately be required to pay for a lease extension.

Bedford property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to grant a mortgage on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become jittery at around 75 years. This may be problematic when you wish to sell or refinance your flat as it will be effectively unmortgageable. You might have no immediate intention to sell but when you do your buyer must wait a couple of years before being able to commence the legal procedures for a lease extension.

What makes us experts in Bedford lease extensions?

The lawyers that we work with handle Bedford 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 conveyancing solicitor we work with provide it.

Bedford Lease Extension Case Summaries:

Samuel, Bedford, Bedfordshire

Last October Samuel, came precariously close to the 80-year mark with the lease on his basement apartment in Bedford. In buying his flat two decades ago, the length of the lease was of little significance. Luckily, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Samuel extended the lease at the eleventh hour in April. Samuel and the landlord who owned the flat above ultimately agreed on an amount of £5,000 . If the lease had dropped lower than eighty years, the price would have escalated by a minimum £950.

Bedford case:

In 2009 we were called by Dr Archie Thomas who, having bought a purpose-built apartment in Bedford in September 2008. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable premises in Bedford with 100 year plus lease were valued about £270,000. The mid-range ground rent payable was £55 collected every twelve months. The lease expiry date was in 2101. Considering the 75 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.

Bedford case:

In 2013 we were e-mailed by Mrs A Miller who, having took over the lease of a ground floor flat in Bedford in May 2000. The question was if we could estimate the price could be for a ninety year lease extension. Comparable residencies in Bedford with a long lease were in the region of £168,800. The mid-range amount of ground rent was £60 billed monthly. The lease ran out in 2081. Having 55 years left we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus expenses.