Top reasons for Brampton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Brampton property value

It’s an underpublicised certainty that a Brampton residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Brampton property market.Once your lease nears 85ish years, you should start considering a lease extension. If lease term dips under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Brampton will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.

An extended lease has roughly the same value as a freehold

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

Lenders may decide not to issue a mortgage on a short lease

Many banks and building societies will not grant a mortgage on a lease with less than 70 years remaining - although this varies from lender to lender. A buyer will no doubt find it difficult to obtain a mortgage and this could result in your Brampton property being difficult to dispose of or to obtain finance on.

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

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

Brampton Lease Extension Example Cases:

Madeleine, Brampton, Cumbria,

Trailing lengthy correspondence with the landlord of her ground floor flat in Brampton, Madeleine started the lease extension process as the 80 year mark was rapidly nearing. The legal work completed in February 2010. The freeholder’s costs were restricted to a tad over 700 GBP.

Brampton case:

In 2012 we were contacted by Mr and Mrs. E Hall who, having owned a ground floor apartment in Brampton in March 1998. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Identical residencies in Brampton with 100 year plus lease were valued about £189,000. The average amount of ground rent was £55 invoiced annually. The lease ended on 10 January 2079. Taking into account 53 years remaining we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus fees.

Brampton case:

Mr and Mrs. F Fournier completed a purpose-built apartment in Brampton in February 1998. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Similar residencies in Brampton with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 collected monthly. The lease concluded in 2099. Considering the 73 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.