Main reasons to start your Bedmond lease extension

Why you should start your Bedmond lease extension today:

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

Bedmond leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Bedmond tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Bedmond you really ought to investigate if your lease has between seventy and ninety years left. There are good reasons why a Bedmond leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is actioned without delay

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

Leasehold properties in Bedmond with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lending institutions will not issue a mortgage on a short lease

The trend since the credit crunch has been for lenders to tighten lending requirements generally - 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 lenders has increased. Historically lenders were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Bedmond lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Bedmond,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bedmond valuers.

Bedmond Lease Extension Case Studies:

Millie, Bedmond, Hertfordshire,

After protracted negotiations with the freeholder of her ground floor apartment in Bedmond, Millie commenced the lease extension process as the 80 year mark was fast approaching. The transaction completed in October 2005. The freeholder’s charges were restricted to approximately 600 pounds.

Bedmond case:

In 2012 we were approached by Dr G Clark who, having bought a purpose-built flat in Bedmond in September 2006. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparative premises in Bedmond with 100 year plus lease were valued about £208,600. The average amount of ground rent was £60 collected monthly. The lease lapsed on 12 November 2083. Given that there were 57 years outstanding we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including professional charges.

Bedmond case:

Last February we were e-mailed by Mr Michael Hall , who was assigned a lease of a studio flat in Bedmond in March 1998. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Bedmond with 100 year plus lease were valued about £200,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ran out on 6 April 2103. Considering the 77 years outstanding we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.