Why you should start your Bridport lease extension

Top reasons for lease extension now:

Increase your lease and increase your Bridport property value

The re-sale value of a leasehold property in Bridport is impacted by how long the lease has remaining. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be addressed in advance of the 80 year mark. Leasehold Reform legislation enables Bridport qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold residencies in Bridport with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions may decide not to finance a property with a short lease

The propensity since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past lenders were content with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in Bridport lease extensions?

The lawyers that we work with undertake Bridport 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 conveyancing solicitor we work with provide it.

Bridport Lease Extension Case Summaries:

Callum, Bridport, Dorset,

Callum was the the leasehold owner of a high value apartment in Bridport on the market with a lease of fraction over fifty eight years outstanding. Callum informally spoke with his landlord 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 £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Callum to exercise his statutory right. Callum procured expert advice and was able to make an informed judgement and deal with the matter and sell the property.

Bridport case:

Dr C Clarke moved into a ground floor apartment in Bridport in March 2004. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Bridport with 100 year plus lease were valued around £205,000. The mid-range ground rent payable was £50 collected per annum. The lease lapsed on 7 November 2105. Having 79 years unexpired we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.

Bridport case:

Dr N Petit took over the lease of a first floor flat in Bridport in May 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparative homes in Bridport with an extended lease were in the region of £275,000. The average ground rent payable was £65 collected every twelve months. The lease end date was in 2094. Having 68 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.