Why you should start your Bideford lease extension

Top reasons for lease extension now:

Increase your lease and increase your Bideford property value

With a long leasehold premises in Bideford, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Leasehold owners in Bideford with a lease approaching 81 years remaining should seriously think of extending it sooner than later. When a lease has below 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.

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

It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.

Lending institutions may not lend on a short lease

Mortgage companies are tightening their criteria and a meaningful number now expect flats to have a minimum of 60 if not 70 years remaining once the mortgage has expired. Given that plenty of flats in Bideford were created in the 1950s, 1960s and 1970s this means many now need to be extended if they if they are to be mortgageable.

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

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

Bideford Lease Extension Case Summaries:

Nathaniel, Bideford, Devon

Half a year ago Nathaniel, came dangerously close to the 80-year threshold with the lease on his purpose- built flat in Bideford. In buying his property twenty years previously, the unexpired term was of little significance. Luckily, he noticed he needed to take steps soon on a lease extension. Nathaniel extended the lease at the eleventh hour last June. Nathaniel and the landlord ultimately settled on a premium of £5,500 . If he failed to meet the deadline, the premium would have become more costly by a minimum £1,000.

Bideford case:

In 2012 we were called by Mrs Yasmin Scott who, having took over the lease of a garden apartment in Bideford in September 1999. The question was if we could approximate the premium could be for a ninety year lease extension. Comparable residencies in Bideford with a long lease were valued around £171,800. The average ground rent payable was £55 collected yearly. The lease ended in 2076. Considering the 50 years as a residual term we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus costs.

Bideford case:

Mr Nathan Howard completed a purpose-built flat in Bideford in April 1997. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable properties in Bideford with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease expiry date was in 2096. Given that there were 70 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.