Why you should start your Bridport lease extension

Top reasons for lease extension now:

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

Bridport leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Bridport residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bridport you should check if your lease has between seventy and 90 years remaining. There are good reasons why a Bridport flat owner with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

Leasehold premises in Bridport with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders will not finance a property with a short lease

Almost all banks and building societies will not lend on a lease with less than seventy years remaining - although this varies from lender to lender. A buyer will undoubtedly find it difficult to obtain a mortgage and this will result in your Bridport property being difficult to dispose of or to obtain finance on.

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

Regardless of whether you are a tenant or a freeholder in Bridport,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 experience and the close ties they enjoy with Bridport valuers.

Bridport Lease Extension Case Studies:

Teddy, Bridport, Dorset

Last Autumn Teddy, came precariously close to the 80-year threshold with the lease on his studio apartment in Bridport. In buying his flat two decades ago, the length of the lease was of minimal concern. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Teddy was able to extend his lease just under the wire last January. Teddy and the landlord who owned the flat above subsequently agreed on sum of £5,500 . If the lease had slipped to less than eighty years, the premium would have become more exhorbitant by a minimum £1,050.

Bridport case:

Last Summer we were phoned by Mr and Mrs. N Ramírez , who completed a first floor apartment in Bridport in April 2007. We are asked if we could estimate the price could be for a ninety year lease extension. Similar homes in Bridport with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 collected yearly. The lease came to a finish on 1 October 2078. Given that there were 52 years outstanding we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of expenses.

Bridport case:

In 2014 we were contacted by Mr Felix Wood who, having completed a newly refurbished flat in Bridport in April 2001. The question was if we could estimate the premium would be to extend the lease by an additional years. Similar properties in Bridport with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 collected every twelve months. The lease lapsed in 2098. Taking into account 72 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 not including costs.