Why you should commence your Bestwood lease extension

Why you should start your Bestwood lease extension today:

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

Bestwood leases on domestic properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Bestwood will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain situations you may not be entitled. There are also strict timetables and steps to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.

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

Leasehold properties in Bestwood with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not lend with a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Bestwood lease extensions?

Regardless of whether you are a tenant or a landlord in Bestwood,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bestwood valuers.

Bestwood Lease Extension Example Cases:

Courtney, Bestwood, Nottinghamshire,

After lengthy discussions with the freeholder of her garden flat in Bestwood, Courtney initiated the lease extension process just as her lease was coming close to the crucial 80-year deadline. The lease extension was finalised in June 2007. The landlord’s costs were negotiated to a tad over six hundred pounds.

Bestwood case:

Last month we were contacted by Dr Freya Lewis , who took over the lease of a garden apartment in Bestwood in June 2009. The question was if we could estimate the price could be to extend the lease by 90 years. Similar premises in Bestwood with 100 year plus lease were valued about £270,000. The average ground rent payable was £55 collected yearly. The lease terminated in 2101. Having 75 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.

Bestwood case:

Mr David Walker acquired a ground floor apartment in Bestwood in September 2000. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Similar properties in Bestwood with a long lease were valued about £168,800. The average ground rent payable was £60 collected annually. The lease ended in 2081. Taking into account 55 years left we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including fees.