Top reasons for Bodmin lease extension

Main reasons to commence your Bodmin lease extension today:

Increase your lease and increase your Bodmin property value

Bodmin leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Bodmin residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Bodmin you must investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

Bodmin property with a lease extension is almost the same value as a freehold

Leasehold premises in Bodmin with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders may not lend on a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to become jittery at around 75 years. This may cause difficulties once you come to market or refinance your property as it will be practically unmortgageable. You may have no imminent desire to sell but when you do your purchaser must wait 2 years before they can exercise the right to a a lease extension.

What makes us experts in Bodmin lease extensions?

Engaging our service will provide you enhanced control over the value of your Bodmin leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Bodmin Lease Extension Example Cases:

Milo, Bodmin, Cornwall

Last Christmas Milo, started to get close to the 80-year threshold with the lease on his studio apartment in Bodmin. Having purchased his property 18 years ago, the unexpired term was of no relevance. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Milo arranged for a lease extension just under the wire last March. Milo and the landlord in the end settled on a premium of £5,500 . If the lease had fallen below eighty years, the premium would have increased by at least £1,100.

Bodmin case:

In 2012 we were called by Dr R Adams who, having purchased a garden apartment in Bodmin in May 1997. We are asked if we could approximate the price could be to extend the lease by ninety years. Similar premises in Bodmin with an extended lease were worth £285,000. The mid-range ground rent payable was £45 collected yearly. The lease expiry date was on 1 November 2097. Given that there were 71 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.

Bodmin case:

Ms P Robinson completed a garden apartment in Bodmin in March 2007. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparative premises in Bodmin with an extended lease were in the region of £225,800. The average amount of ground rent was £60 collected monthly. The lease lapsed on 14 August 2086. Considering the 60 years remaining we approximated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of costs.