Why you should start your Biggleswade lease extension

Top reasons for lease extension now:

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

Biggleswade leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Biggleswade residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Biggleswade you must investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold properties in Biggleswade with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Banks and Building Societies will not grant a mortgage with a short lease

Most high street banks are making their criteria more stringent and a meaningful number now require flats to have a minimum of 60 if not 70 years left once the mortgage has expired. Given that plenty of flats in Biggleswade were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they wish to obtain a mortgage.

Why use us for your lease extension in Biggleswade?

The lawyers that we work with undertake Biggleswade lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Biggleswade Lease Extension Example Cases:

Andrew, Biggleswade, Bedfordshire

In 2014 Andrew, came dangerously close to the eighty-year threshold with the lease on his basement flat in Biggleswade. In buying his property two decades ago, the lease term was of minimal concern. by good luck, he recognised he needed to take action soon on Extending the lease. Andrew arranged for a lease extension just under the wire in September. Andrew and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If the lease had slid below eighty years, the figure would have become more costly by a minimum £875.

Biggleswade case:

Dr Thomas Adams owned a ground floor flat in Biggleswade in June 2005. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Comparative premises in Biggleswade with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected yearly. The lease ended in 2097. Taking into account 71 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.

Biggleswade case:

Mr and Mrs. C Nelson took over the lease of a purpose-built apartment in Biggleswade in March 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparable properties in Biggleswade with 100 year plus lease were worth £254,200. The average amount of ground rent was £60 billed yearly. The lease came to a finish in 2077. Considering the 51 years remaining we calculated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of professional charges.