Top reasons for Bourne lease extension

Top reasons for lease extension now:

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

Bourne leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the current lease dips below 80 years - otherwise a higher premium will be due. Leasehold owners in Bourne will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.

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

Leasehold premises in Bourne with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.

Lending institutions may not lend with a short lease

Most banks have constrained their lending criteria in recent years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are considered to be inadequate for lending purposes.

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

Regardless of whether you are a tenant or a freeholder in Bourne,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 Bourne valuers.

Bourne Lease Extension Example Cases:

Kian, Bourne, Lincolnshire,

Kian owned a 2 bedroom flat in Bourne being marketed with a lease of just over 61 years outstanding. Kian on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be payable on a lease extension were Kian to invoke his statutory right. Kian procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Bourne case:

Last Winter we were contacted by Mrs Hollie Allen , who completed a garden apartment in Bourne in February 2012. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparative properties in Bourne with an extended lease were in the region of £250,400. The mid-range amount of ground rent was £65 billed yearly. The lease termination date was on 21 July 2090. Having 64 years remaining we approximated the premium to the landlord to extend the lease to be between £19,000 and £22,000 not including expenses.

Bourne case:

In 2012 we were phoned by Mr and Mrs. G Moore who, having moved into a basement flat in Bourne in July 2002. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparative premises in Bourne with an extended lease were valued around £184,000. The average ground rent payable was £55 billed monthly. The lease expired on 18 January 2079. Considering the 53 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.