Main reasons to start your Biggleswade lease extension

Why you should commence your Biggleswade lease extension today:

Increase your lease and increase your Biggleswade property value

Biggleswade leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Biggleswade residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Biggleswade you really ought to investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold premises in Biggleswade with in excess of one hundred years left on the lease are sometimes 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 to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Lending institutions may not finance a property on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to get jittery at around 75 years. This may be problematic when you need to market or refinance your flat as it will be practically unmortgageable. You might have no immediate plan to sell but when you do your buyer must hold off for 2 years before they can commence the legal procedures for an extension to the lease.

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

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

Biggleswade Lease Extension Example Cases:

Isabelle, Biggleswade, Bedfordshire,

In the wake of 6 months of unsuccessful negotiations with the landlord of her garden apartment in Biggleswade, Isabelle commenced the lease extension process as the 80 year deadline was fast coming. The transaction was finalised in May 2009. The freeholder’s fees were kept to an absolute minimum.

Biggleswade case:

Last Spring we were phoned by Mr and Mrs. V Rivera , who completed a studio flat in Biggleswade in March 2011. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Biggleswade with a long lease were worth £270,000. The average amount of ground rent was £55 invoiced yearly. The lease came to a finish in 2101. Considering the 75 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.

Biggleswade case:

In 2009 we were approached by Mr and Mrs. W Simon who, having owned a one bedroom apartment in Biggleswade in August 2000. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Similar flats in Biggleswade with a long lease were valued around £173,800. The average ground rent payable was £60 billed yearly. The lease ran out on 28 May 2081. Having 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus expenses.