Why you should start your Bitterne lease extension

Why you should start your Bitterne lease extension today:

A Bitterne lease depreciates with the years remaining on the lease.

The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Bitterne can extend the lease for a further 90 years in accordance with legislation. Please think carefully before delaying your Bitterne lease extension. Postponing the costs today simply increases the price you will ultimately have to pay for a lease extension.

An extended lease is almost the same value as a freehold

Leasehold residencies in Bitterne with over one hundred years unexpired on the lease are often referred to as ‘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 to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies will not lend on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get jittery at around 75 years. This may cause difficulties when you come to market or refinance your property as it will be practically unmortgageable. You may have no imminent plan to sell but when you do your purchaser will need to hold off for 2 years before being able to exercise the right to a a lease extension.

Why use us for your lease extension in Bitterne?

Regardless of whether you are a tenant or a landlord in Bitterne,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 Bitterne valuers.

Bitterne Lease Extension Example Cases:

Ryan, Bitterne, Hampshire

During the course of the last few months Ryan, started to get close to the eighty-year mark with the lease on his studio apartment in Bitterne. In buying his home 18 years previously, the unexpired term was of little relevance. Luckily, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Ryan arranged for a lease extension just ahead of time in January. Ryan and the freeholder via the management company eventually settled on the final figure of £5,500 . If the lease had slid to less than 80 years, the amount would have become more exhorbitant by at least £975.

Bitterne case:

Last year we were approach by Mr and Mrs. P Stewart , who owned a basement apartment in Bitterne in February 2004. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative properties in Bitterne with a long lease were in the region of £183,600. The average ground rent payable was £65 collected monthly. The lease elapsed in 2083. Considering the 57 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of fees.

Bitterne case:

Dr B Lee purchased a recently refurbished apartment in Bitterne in October 1996. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Bitterne with a long lease were valued around £250,000. The average ground rent payable was £50 collected monthly. The lease lapsed on 19 May 2094. Considering the 68 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.