Why you should commence your Bromham lease extension

Main reasons to start your Bromham lease extension today:

Increase your lease and increase your Bromham property value

Bromham leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. Flat owners in Bromham will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain cases you may not be entitled. There are also strict deadlines and formalities to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.

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

It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.

Lenders may not issue a mortgage on a short lease

The trend since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the property 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 would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined 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 Bromham lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Bromham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bromham valuers.

Bromham Lease Extension Example Cases:

George, Bromham, Bedfordshire

During the course of the last few months George, started to get close to the eighty-year threshold with the lease on his studio apartment in Bromham. Having purchased his property two decades ago, the length of the lease was of minimal importance. Thankfully, he noticed he needed to take steps soon on Extending the lease. George arranged for a lease extension just under the wire in July. George and the landlord subsequently agreed on the final figure of £6,000 . If the lease had descended below 80 years, the amount would have become more exhorbitant by at least £900.

Bromham case:

Mr and Mrs. A Bell purchased a one bedroom flat in Bromham in July 1995. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable flats in Bromham with a long lease were in the region of £290,000. The average ground rent payable was £45 collected annually. The lease ended on 28 February 2098. Taking into account 72 years left we calculated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 plus professional charges.

Bromham case:

Last Spring we were e-mailed by Mrs I Cook , who acquired a studio apartment in Bromham in August 1998. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable residencies in Bromham with an extended lease were in the region of £233,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ran out in 2087. Taking into account 61 years unexpired we approximated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 plus expenses.