Why you should commence your Billesdon lease extension

Why you should commence your Billesdon lease extension today:

A Billesdon leasehold property depreciates with the years remaining on the lease.

Chances are that if you own a flat in Billesdon you actually own a long leasehold interest over your property

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

Leasehold residencies in Billesdon with over one hundred years outstanding 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions may decide not to grant a mortgage on a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to become concerned at around 75 years. This may cause difficulties as and when you need to sell or remortgage your flat as it will be effectively unmortgageable. Even though you may not have an imminent plan to sell but when you do your purchaser will need to hold off for two years before being able to initiate the legal procedures for an extension to the lease.

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

The conveyancing solicitors that we work with procure Billesdon 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 lawyer we work with provide it.

Billesdon Lease Extension Case Studies:

Mason, Billesdon, Leicestershire

Last year Mason, came seriously close to the eighty-year threshold with the lease on his one bedroom apartment in Billesdon. Having bought his home 18 years ago, the length of the lease was of little significance. As luck would have it, he recognised he needed to take steps soon on a lease extension. Mason was able to extend his lease just under the wire in July. Mason and the landlord who owned the flat above in the end settled on sum of £6,000 . If he had missed the deadline, the figure would have become more exhorbitant by a minimum £875.

Billesdon case:

In 2009 we were e-mailed by Mr and Mrs. N Mason who, having bought a one bedroom flat in Billesdon in March 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Billesdon with an extended lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected monthly. The lease ended on 19 April 2092. Taking into account 66 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.

Billesdon case:

Last September we were phoned by Mr and Mrs. H Ricardo , who completed a studio apartment in Billesdon in March 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Billesdon with 100 year plus lease were worth £275,000. The average ground rent payable was £55 invoiced annually. The lease lapsed in 2103. Given that there were 77 years left we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.