Why you should commence your Bow Street lease extension

Top reasons for lease extension now:

Increase your lease and increase your Bow Street property value

With a long leasehold premises in Bow Street, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are less than eighty years remaining. Residents in Bow Street with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has below eighty years left, under the current Act the landlord is entitled to calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is payable.

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

It is generally accepted that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may decide not to finance a property with a short lease

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

Lease extensions in Bow Street can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Bow Street lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Bow Street Lease Extension Example Cases:

Rhiannon, Bow Street, Ceredigion,

Off the back of unsuccessful negotiations with the freeholder of her studio apartment in Bow Street, Rhiannon commenced the lease extension process just as the lease was approaching the crucial eighty-year threshold. The transaction was finalised in May 2014. The landlord’s costs were kept to an absolute minimum.

Bow Street case:

In 2011 we were called by Mr and Mrs. A Brown who, having completed a one bedroom flat in Bow Street in September 1995. The question was if we could approximate the premium would be for a 90 year extension to my lease. Comparative premises in Bow Street with 100 year plus lease were worth £285,000. The average ground rent payable was £55 invoiced monthly. The lease expired in 2106. Given that there were 80 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.

Bow Street case:

Dr G Torres was assigned a lease of a studio apartment in Bow Street in July 1997. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical premises in Bow Street with 100 year plus lease were in the region of £200,800. The mid-range amount of ground rent was £65 billed per annum. The lease elapsed in 2086. Taking into account 60 years left we calculated the premium to the landlord for the lease extension to be between £20,900 and £24,200 plus costs.