Main reasons to start your Bosham lease extension

Top reasons for lease extension now:

Increase your lease and increase your Bosham property value

Bosham leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the current lease drops lower than 80 years - otherwise a higher amount will be due. Leasehold owners in Bosham will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some cases you may not be entitled. There are prescribed timetables and steps to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.

An extended lease is almost the same value as a freehold

Leasehold premises in Bosham with over 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions may not loan monies on a short lease

The trend since the credit crunch has been for banks to tighten lending criteria across the board - this has extended to the property over which the home loan is to be charged. This has resulted in the unexpired lease term required by banks has increased. In the past mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

Irrespective of whether you are a tenant or a freeholder in Bosham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bosham valuers.

Bosham Lease Extension Example Cases:

Henry, Bosham, West Sussex,

Henry was the the leasehold owner of a studio apartment in Bosham being marketed with a lease of a little over 72 years left. Henry on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Henry to invoke his statutory right. Henry obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.

Bosham case:

Mr D Davis bought a newly refurbished flat in Bosham in November 2004. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Comparable flats in Bosham with a long lease were in the region of £216,000. The mid-range ground rent payable was £60 billed per annum. The lease expired in 2084. Having 58 years remaining we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including costs.

Bosham case:

Last year we were called by Mr Luke Roux , who owned a one bedroom apartment in Bosham in March 2012. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Identical premises in Bosham with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease came to a finish in 2105. Given that there were 79 years left we calculated the compensation to the freeholder for the lease extension to be between £7,600 and £8,800 exclusive of expenses.