Why you should start your Bedworth lease extension

Top reasons for lease extension now:

Increase your lease and increase your Bedworth property value

Bedworth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Bedworth residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bedworth you must check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Bedworth flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is effected without delay

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

Leasehold residencies in Bedworth with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.

Lending institutions may not grant a mortgage on a short lease

Banks and building societies are really clamping down as regards to properties in Bedworth with short leases. For instance you might discover that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you wanted to sell, your only options would be to find a cash purchaser, or try your luck at auction thus restricting the number of potential buyers.

What makes us experts in Bedworth lease extensions?

Irrespective of whether you are a tenant or a freeholder in Bedworth,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 Bedworth valuers.

Bedworth Lease Extension Case Studies:

Tyler, Bedworth, Warwickshire

Twenty four months ago Tyler, came perilously near to the eighty-year mark with the lease on his basement apartment in Bedworth. In buying his home twenty years previously, the unexpired term was of little concern. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Tyler arranged for a lease extension at the eleventh hour in June. Tyler and the landlord in the end agreed on the final figure of £5,000 . If he failed to meet the deadline, the figure would have become more exhorbitant by a minimum £900.

Bedworth case:

In 2011 we were called by Mr and Mrs. D Laurent who, having purchased a ground floor apartment in Bedworth in June 2011. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Similar properties in Bedworth with an extended lease were valued about £275,000. The mid-range ground rent payable was £45 collected annually. The lease termination date was in 2095. Considering the 69 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.

Bedworth case:

Last month we were approach by Mr and Mrs. J Campbell , who completed a ground floor flat in Bedworth in February 1998. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar flats in Bedworth with a long lease were worth £216,000. The mid-range ground rent payable was £60 billed monthly. The lease came to a finish on 9 March 2084. Given that there were 58 years as a residual term we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.