Main reasons to start your Bridgnorth lease extension

Main reasons to start your Bridgnorth lease extension today:

A Bridgnorth leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Bridgnorth is impacted by how long the lease has remaining. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the lease extension process when the lease still has 82 years to run so that a lease extension can be concluded prior to the 80 year threshold. Statute enables Bridgnorth qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of 90 years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

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

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Mortgage lenders will not lend with a short lease

Lenders are tightening their criteria and a meaningful number now require flats to have a minimum of sixty if not seventy years left once the mortgage has expired. Considering many flats in Bridgnorth were created in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to obtain a mortgage.

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

Engaging our service will provide you increased control over the value of your Bridgnorth leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Bridgnorth Lease Extension Example Cases:

Emma, Bridgnorth, Shropshire,

In the wake of eight months of unsuccessful negotiations with the freeholder of her ground floor flat in Bridgnorth, Emma started the lease extension process just as the lease was nearing the crucial 80-year deadline. The lease extension was concluded in May 2010. The freeholder’s costs were kept to an absolute minimum.

Bridgnorth case:

In 2014 we were contacted by Dr J Young who, having acquired a first floor flat in Bridgnorth in July 2009. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical properties in Bridgnorth with 100 year plus lease were worth £285,000. The average ground rent payable was £45 billed monthly. The lease terminated in 2097. Considering the 71 years left we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.

Bridgnorth case:

Last January we were e-mailed by Mr Max Murphy , who owned a one bedroom flat in Bridgnorth in November 2005. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar residencies in Bridgnorth with a long lease were valued about £225,800. The average ground rent payable was £60 collected yearly. The lease ran out on 11 February 2086. Having 60 years as a residual term we calculated the premium to the landlord to extend the lease to be between £24,700 and £28,600 plus professional charges.