Why you should commence your Bourne lease extension

Main reasons to commence your Bourne lease extension today:

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

For anyone whose Bourne property is held on a long lease, the message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.

An extended lease has roughly the same value as a freehold

Leasehold premises in Bourne with more than 100 years outstanding 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lending institutions may decide not to loan monies on a short lease

Banks and building societies are really clamping down as regards to homes in Bourne with short leases. For instance you might discover that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you needed to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus reducing the amount of potential purchasers.

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

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

Bourne Lease Extension Example Cases:

Dexter, Bourne, Lincolnshire,

Dexter owned a 2 bedroom apartment in Bourne on the market with a lease of a little over 72 years outstanding. Dexter on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.

Bourne case:

Mr and Mrs. W Smith moved into a recently refurbished apartment in Bourne in June 1996. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Similar properties in Bourne with a long lease were worth £181,600. The average ground rent payable was £55 billed monthly. The lease ran out on 11 June 2078. Considering the 52 years left we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.

Bourne case:

Mr A Harris completed a recently refurbished apartment in Bourne in March 2004. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Identical homes in Bourne with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease finished on 10 November 2098. Having 72 years unexpired we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.