Why you should start your Bow Street lease extension

Why you should commence your Bow Street lease extension today:

A Bow Street lease depreciates with the years remaining on the lease.

For those whose Bow Street flat is held on a long lease, our message is clear – if no remedial action is taken, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension.

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

Leasehold properties in Bow Street with in excess of 100 years left 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 buying the freehold unless savings on ground rent and maintenance charges merit it.

Lending institutions may not loan monies on a short lease

Banks and building societies are really clamping down as regards to properties in Bow Street with short leases. For example you might discover that their lending requirements 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 hope for the best at auction thus narrowing the amount of prospective purchasers.

Why use us for your lease extension in Bow Street?

The conveyancers that we work with procure Bow Street lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Bow Street Lease Extension Case Studies:

Luke, Bow Street, Ceredigion,

Luke was the the leasehold owner of a studio flat in Bow Street being sold with a lease of a few days over 59 years remaining. Luke informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Luke to invoke his statutory right. Luke procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.

Bow Street case:

Mr and Mrs. A Gray moved into a recently refurbished apartment in Bow Street in September 2005. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative residencies in Bow Street with a long lease were worth £245,000. The average ground rent payable was £45 invoiced per annum. The lease finished in 2094. Having 68 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.

Bow Street case:

In 2009 we were e-mailed by Mrs N Leroy who, having bought a newly refurbished flat in Bow Street in July 1999. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Bow Street with a long lease were valued around £280,000. The mid-range ground rent payable was £55 collected per annum. The lease finished in 2105. Given that there were 79 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.