Why you should commence your Bridport lease extension

Top reasons for lease extension now:

Increase your lease and increase your Bridport property value

As the length of the unexpired term of a Bridport domestic lease lessens so does its value and therefore the value of your property. If the lease has, in excess of 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. The majority of flat owners in Bridport will meet the qualifying criteria; that being said a lawyer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Lenders will not issue a mortgage on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies were content with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

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

Retaining our service gives you enhanced control over the value of your Bridport leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Bridport Lease Extension Case Summaries:

Samantha, Bridport, Dorset,

Trailing lengthy correspondence with the freeholder of her garden flat in Bridport, Samantha commenced the lease extension process as the 80 year mark was rapidly nearing. The legal work was concluded in November 2008. The freeholder’s charges were kept to an absolute minimum.

Bridport case:

In 2011 we were called by Mr and Mrs. O Phillips who, having bought a newly refurbished flat in Bridport in July 2012. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar flats in Bridport with a long lease were in the region of £300,000. The mid-range ground rent payable was £50 billed annually. The lease elapsed on 20 October 2101. Taking into account 75 years left we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.

Bridport case:

Last Spring we were contacted by Dr G Patel , who acquired a basement apartment in Bridport in July 2009. The dilemma was if we could approximate the price would likely be to extend the lease by an additional years. Comparable premises in Bridport with a long lease were worth £250,400. The average amount of ground rent was £65 invoiced per annum. The lease ended in 2090. Given that there were 64 years unexpired we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 plus costs.