Main reasons to commence your Boston lease extension

Why you should start your Boston lease extension today:

Increase your lease and increase your Boston property value

Boston leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease dips under 80 years - otherwise a higher amount will be payable. Leasehold owners in Boston will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some situations you may not qualify. There are also strict deadlines and steps to follow once the process has started so it’s sensible to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Lenders will not finance a property with a short lease

The propensity since 2008 has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be charged. This has meant the unexpired lease term required by banks has increased. Historically banks were content with 25 years plus the term of the loan - typically fifty 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.

What makes us experts in Boston lease extensions?

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

Boston Lease Extension Example Cases:

Toby, Boston, Lincolnshire

18 months ago Toby, started to get near to the 80-year mark with the lease on his one bedroom apartment in Boston. In buying his flat 19 years ago, the unexpired term was of little interest. by good luck, he recognised he would soon be paying way over the odds for Extending the lease. Toby arranged for a lease extension just under the wire in September. Toby and the freeholder via the management company subsequently settled on the final figure of £6,000 . If the lease had slid below 80 years, the price would have escalated by a minimum £1,025.

Boston case:

Last May we were called by Mr and Mrs. J Davis , who was assigned a lease of a first floor flat in Boston in November 2008. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Boston with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease elapsed in 2100. Having 74 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.

Boston case:

Ms U Roberts completed a first floor flat in Boston in January 2003. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar residencies in Boston with 100 year plus lease were in the region of £166,400. The mid-range amount of ground rent was £60 billed monthly. The lease terminated in 2080. Considering the 54 years unexpired we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including expenses.