Why you should start your Bispham lease extension

Top reasons for lease extension now:

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

The nearer a domestic lease in Bispham gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond 99 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Bispham will qualify for this right; however a lawyer can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

Leasehold premises in Bispham with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. 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.

Lenders may not loan monies on a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. Historically banks were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

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

Regardless of whether you are a tenant or a freeholder in Bispham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bispham valuers.

Bispham Lease Extension Example Cases:

Rhiannon, Bispham, Lancashire,

Trailing protracted discussions with the landlord of her one bedroom flat in Bispham, Rhiannon initiated the lease extension process just as her lease was coming close to the critical eighty-year threshold. The legal work was concluded in June 2005. The landlord’s charges were kept to an absolute minimum.

Bispham case:

Last September we were phoned by Dr Mason Stewart , who completed a ground floor flat in Bispham in January 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Identical properties in Bispham with 100 year plus lease were worth £168,800. The average amount of ground rent was £60 billed monthly. The lease concluded in 2081. Given that there were 55 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus fees.

Bispham case:

In 2012 we were called by Mr and Mrs. N Cook who, having moved into a garden flat in Bispham in February 2009. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative flats in Bispham with a long lease were in the region of £235,200. The mid-range amount of ground rent was £45 billed yearly. The lease ran out in 2092. Considering the 66 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.