Main reasons to commence your Bideford lease extension

Main reasons to commence your Bideford lease extension today:

Increase your lease and increase your Bideford property value

The market value of a leasehold property in Bideford is impacted by how long the lease has remaining. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be finalised well before the 80 year threshold. Leasehold Reform legislation entitles Bideford qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to lend on a short lease

Nearly all banks and building societies require a lengthy amount of time remaining on any leasehold property before they will consider it as adequate security. Regardless of whether you require a mortgage, you should be mindful that it is reasonable to assume that someone intending to acquire your property in the future might well do, so if they can't obtain a mortgage, then the value of the property could be adversely impacted. Since 2008 many mortgage lenders have increased the required minimum lease length that they are prepared to lend on

Why use us for your lease extension in Bideford?

Retaining our service will provide you enhanced control over the value of your Bideford leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Bideford Lease Extension Example Cases:

Henry, Bideford, Devon,

Henry was the the leasehold owner of a conversion flat in Bideford on the market with a lease of fraction over sixty years unexpired. Henry informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Henry to exercise his statutory right. Henry procured expert advice and secured satisfactory deal informally and ending up with a market value flat.

Bideford case:

In 2009 we were phoned by Mr and Mrs. T Watson who, having completed a studio flat in Bideford in April 1998. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparable homes in Bideford with 100 year plus lease were in the region of £196,400. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ended on 18 August 2080. Taking into account 54 years as a residual term we approximated the premium to the landlord for the lease extension to be within £35,200 and £40,600 exclusive of expenses.

Bideford case:

In 2014 we were phoned by Dr R Hill who, having was assigned a lease of a ground floor flat in Bideford in July 2002. The question was if we could estimate the price could be to prolong the lease by ninety years. Identical residencies in Bideford with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £45 invoiced yearly. The lease end date was on 7 May 2101. Given that there were 75 years left we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.