Why you should commence your Bridport lease extension

Top reasons for lease extension now:

Increase your lease and increase your Bridport property value

Bridport residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.

Bridport property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies may not grant a mortgage with a short lease

Banks and Building Societies have specific criteria when lending monies secured on leasehold homes. Many will simply not lend at all once the residual lease term goes below a specified unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired below seventy years suitable security. In addition to this being important when selling, it is also relevant where you are wanting to remortgage your Bridport home.

What makes us experts in Bridport lease extensions?

The conveyancers that we work with handle 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 lawyer we work with provide it.

Bridport Lease Extension Case Studies:

Alex, Bridport, Dorset

16 months ago Alex, came dangerously near to the eighty-year mark with the lease on his one bedroom apartment in Bridport. In buying his home twenty years previously, the lease term was of no relevance. Thankfully, he recognised he would imminently be paying an inflated amount for a lease extension. Alex extended the lease just under the wire in January. Alex and the freeholder ultimately agreed on the final figure of £6,000 . If the lease had slipped lower than 80 years, the premium would have become more costly by at least £850.

Bridport case:

Dr N Simon acquired a studio flat in Bridport in October 1998. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar properties in Bridport with a long lease were worth £285,000. The mid-range amount of ground rent was £45 billed annually. The lease concluded in 2097. Having 71 years remaining we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.

Bridport case:

Mr and Mrs. R Petit acquired a purpose-built apartment in Bridport in July 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar homes in Bridport with a long lease were worth £230,800. The mid-range amount of ground rent was £60 billed quarterly. The lease finished in 2086. Considering the 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 plus professional charges.