Why you should commence your Binstead lease extension

Why you should start your Binstead lease extension today:

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

It’s a harsh certainty that a Binstead residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Binstead property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Binstead will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.

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

Leasehold premises in Binstead 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders may not grant a mortgage with a short lease

Nearly all mortgage lenders will not grant a mortgage on a lease with less than 70 years left to run - although this varies from lender to lender. A buyer will likely find it difficult in obtaining a mortgage and this will result in your Binstead property becoming difficult to dispose of or refinance.

What makes us experts in Binstead lease extensions?

The lawyers that we work with handle Binstead 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.

Binstead Lease Extension Case Studies:

Emma, Binstead, Isle Of Wight,

Off the back of protracted discussions with the freeholder of her one bedroom flat in Binstead, Emma initiated the lease extension process as the eighty year mark was quickly approaching. The transaction was finalised in June 2011. The freeholder’s charges were kept to an absolute minimum.

Binstead case:

Mr and Mrs. T Turner bought a ground floor apartment in Binstead in February 2008. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparative premises in Binstead with an extended lease were in the region of £183,600. The average amount of ground rent was £65 collected every twelve months. The lease ran out on 9 September 2083. Having 57 years unexpired we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus costs.

Binstead case:

Dr C Thompson completed a one bedroom apartment in Binstead in October 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Binstead with an extended lease were valued about £242,600. The mid-range amount of ground rent was £45 collected annually. The lease elapsed in 2093. Considering the 67 years unexpired we estimated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 plus costs.