Why you should start your Bishops Lydeard lease extension

Why you should commence your Bishops Lydeard lease extension today:

A Bishops Lydeard lease depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Bishops Lydeard. Clearly, the period of lease remaining reduces over time. This may pass by relatively unnoticed when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Bishops Lydeard have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful attention before delaying your Bishops Lydeard lease extension. Putting off that expense now likely increases the price you will ultimately incur to extend your lease

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

Leasehold residencies in Bishops Lydeard with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders will not grant a mortgage on a short lease

Almost all banks and building societies require a lengthy amount of time left on any leasehold property before they will consider lending on it. Regardless of whether you require a mortgage, you should keep in mind that it is probable that someone wanting to purchase your property in the future might well do, so in the event that they can't obtain a mortgage, then the market price of the property could be adversely impacted. In the last decade most banks and building societies have increased the required minimum lease length that they are prepared to grant a mortgage on

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

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

Bishops Lydeard Lease Extension Example Cases:

Hunter, Bishops Lydeard, Somerset

Last year Hunter, came very close to the 80-year threshold with the lease on his leasehold apartment in Bishops Lydeard. In buying his property 19 years ago, the unexpired term was of minimal importance. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Hunter was able to extend his lease just in the nick of time in June. Hunter and the freeholder ultimately settled on sum of £5,000 . If he not met the deadline, the sum would have escalated by at least £850.

Bishops Lydeard case:

In 2013 we were phoned by Mrs Louise Hernández who, having purchased a ground floor flat in Bishops Lydeard in April 2004. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Identical premises in Bishops Lydeard with a long lease were worth £270,000. The average ground rent payable was £55 collected per annum. The lease lapsed on 10 October 2101. Having 75 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.

Bishops Lydeard case:

Mrs Imogen Ramírez purchased a ground floor flat in Bishops Lydeard in April 2004. The question was if we could approximate the price would likely be for a 90 year lease extension. Similar properties in Bishops Lydeard with an extended lease were valued around £173,800. The average amount of ground rent was £60 invoiced per annum. The lease terminated on 7 September 2081. Considering the 55 years left we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of costs.