Top reasons for Biddenham lease extension

Why you should commence your Biddenham lease extension today:

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

For those whose Biddenham property is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension.

An extended lease has roughly the same value as a freehold

Leasehold properties in Biddenham with more than 100 years remaining 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.

Mortgage lenders will not loan monies with a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the unexpired lease term required by lenders has increased. In the past mortgage companies would lend on a lease with 25 years plus the term of the loan - typically 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 a prerequisite.

What makes us experts in Biddenham lease extensions?

Lease extensions in Biddenham can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in lease extensions.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Biddenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Biddenham Lease Extension Example Cases:

Edward, Biddenham, Bedfordshire,

Edward owned a high value flat in Biddenham on the market with a lease of a little over 72 years remaining. Edward on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Edward to invoke his statutory right. Edward obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.

Biddenham case:

Last Summer we were approach by Mr Tyler Simon , who bought a recently refurbished apartment in Biddenham in January 1995. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Biddenham with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 invoiced yearly. The lease lapsed on 21 November 2082. Having 56 years left we calculated the premium to the landlord for the lease extension to be within £29,500 and £34,000 not including professional charges.

Biddenham case:

Ms Ellen Bailey was assigned a lease of a purpose-built flat in Biddenham in May 2011. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparable homes in Biddenham with an extended lease were in the region of £242,600. The average ground rent payable was £45 billed per annum. The lease came to a finish in 2093. Considering the 67 years remaining we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus fees.