Main reasons to start your Bredon lease extension

Main reasons to start your Bredon lease extension today:

Increase your lease and increase your Bredon property value

Bredon residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Mortgage lenders may not grant a mortgage on a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to become jittery at around 75 years. This will be problematic as and when you wish to sell or remortgage your property as it will be effectively unmortgageable. Even though you may not have an imminent intention to sell but when you do your buyer will have to wait 2 years before being able to commence the legal procedures for a lease extension.

What makes us experts in Bredon lease extensions?

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

Bredon Lease Extension Case Summaries:

Owen, Bredon, Worcestershire,

Owen owned a high value flat in Bredon on the market with a lease of just over 72 years left. Owen informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Owen to exercise his statutory right. Owen obtained expert advice and secured an acceptable deal informally and sell the flat.

Bredon case:

In 2014 we were approached by Mr and Mrs. I Phillips who, having owned a recently refurbished apartment in Bredon in November 1997. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable flats in Bredon with an extended lease were valued around £267,600. The average ground rent payable was £65 billed yearly. The lease finished on 23 June 2093. Given that there were 67 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 not including fees.

Bredon case:

In 2009 we were e-mailed by Mr Dylan Clarke who, having completed a ground floor flat in Bredon in July 1995. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Identical homes in Bredon with 100 year plus lease were valued about £206,200. The mid-range ground rent payable was £60 invoiced quarterly. The lease concluded in 2082. Considering the 56 years left we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of costs.