Why you should commence your Bromyard lease extension

Top reasons for lease extension now:

A Bromyard lease depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Bromyard. Inevitably, the length of lease left shortens as time goes by. This is often ignored and only becomes a problem when the residence needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Bromyard have the legal entitlement to extend the lease for an additional 90 years under legislation. You should give careful consideration before delaying your Bromyard lease extension. Holding off that expense now likely increases the price you will ultimately have to pay for a lease extension

An extended lease has roughly the same value as a freehold

Leasehold properties in Bromyard with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may decide not to issue a mortgage on a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Bromyard?

Using our service will provide you enhanced control over the value of your Bromyard leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Bromyard Lease Extension Case Studies:

Rachael, Bromyard, Hertfordshire,

Subsequent to lengthy correspondence with the freeholder of her garden apartment in Bromyard, Rachael started the lease extension process as the eighty year threshold was rapidly advancing. The legal work completed in March 2011. The landlord’s costs were kept to an absolute minimum.

Bromyard case:

Last Autumn we were contacted by Mr Logan Ali , who bought a one bedroom apartment in Bromyard in January 1998. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Comparative flats in Bromyard with an extended lease were worth £267,600. The mid-range ground rent payable was £65 invoiced every twelve months. The lease expired on 20 January 2093. Considering the 67 years left we approximated the premium to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of fees.

Bromyard case:

In 2014 we were called by Mr J Bonnet who, having moved into a one bedroom apartment in Bromyard in January 2009. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparable homes in Bromyard with an extended lease were valued around £206,200. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease came to a finish on 18 May 2082. Taking into account 56 years as a residual term we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of fees.