Top reasons for Billingshurst lease extension

Main reasons to start your Billingshurst lease extension today:

Increase your lease and increase your Billingshurst property value

Billingshurst leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be payable. Leasehold owners in Billingshurst will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain situations you may not qualify. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.

An extended lease is almost the same value as a freehold

Leasehold properties in Billingshurst with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions may not loan monies on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. Historically banks would lend on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in Billingshurst lease extensions?

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

Billingshurst Lease Extension Example Cases:

Leon, Billingshurst, West Sussex

During the course of the last few months Leon, started to get close to the 80-year mark with the lease on his first floor apartment in Billingshurst. Having purchased his flat two decades ago, the length of the lease was of little relevance. by good luck, he recognised he needed to take action soon on a lease extension. Leon extended the lease at the eleventh hour in March. Leon and the landlord subsequently settled on an amount of £6,000 . If he failed to meet the deadline, the figure would have escalated by at least £900.

Billingshurst case:

In 2012 we were called by Mr John Bennett who, having acquired a basement flat in Billingshurst in September 2005. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparative properties in Billingshurst with an extended lease were worth £240,600. The average ground rent payable was £60 billed monthly. The lease came to a finish in 2088. Given that there were 62 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of fees.

Billingshurst case:

Mr R Bonnet owned a first floor flat in Billingshurst in September 2011. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Billingshurst with 100 year plus lease were valued around £174,200. The mid-range amount of ground rent was £55 billed per annum. The lease lapsed on 23 August 2077. Having 51 years outstanding we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.