Main reasons to start your Bedworth lease extension

Top reasons for lease extension now:

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

It’s an underpublicised certainty that a Bedworth residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Bedworth property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term slips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Bedworth will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Bedworth with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth 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 estate charges justify it.

Mortgage lenders may decide not to lend on a short lease

The trend since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the unexpired lease term required by banks has increased. In the past mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Bedworth lease extensions?

Regardless of whether you are a tenant or a freeholder in Bedworth,the lease extension lawyers 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 Summaries:

Jonathan, Bedworth, Warwickshire

Last Winter Jonathan, started to get close to the 80-year threshold with the lease on his first floor flat in Bedworth. In buying his home two decades ago, the lease term was of minimal significance. As luck would have it, he recognised he needed to take steps soon on a lease extension. Jonathan was able to extend his lease just in the nick of time last August. Jonathan and the landlord who owned the flat above in the end agreed on sum of £6,000 . If he failed to meet the deadline, the price would have gone up by a minimum £900.

Bedworth case:

Last year we were called by Ms Kirsty Roberts , who bought a one bedroom flat in Bedworth in November 2005. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical premises in Bedworth with an extended lease were in the region of £208,600. The mid-range ground rent payable was £60 collected annually. The lease concluded in 2083. Taking into account 57 years unexpired we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including legals.

Bedworth case:

Last Winter we were e-mailed by Dr Hannah Khan , who purchased a garden apartment in Bedworth in August 2000. We are asked if we could estimate the price would be for a 90 year extension to my lease. Similar flats in Bedworth with a long lease were worth £200,000. The average ground rent payable was £50 collected monthly. The lease expired on 28 October 2103. Considering the 77 years unexpired we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.