Top reasons for Bruton lease extension

Why you should start your Bruton lease extension today:

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

Bruton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Bruton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Bruton you must check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Bruton flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is effected without delay

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

It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same 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 many years in the future.

Lenders may decide not to issue a mortgage on a short lease

Mortgage companies do not like short residential leases. You are likely to experience difficulties if you wish to sell your flat in Bruton if the remaining lease term is below the criteria set by most mortgage companies. Different mortgage companies have varying requirements but on the whole theyrequire an unexpired term of at least 65 years.

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

The lawyers that we work with procure Bruton 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 conveyancing solicitor we work with provide it.

Bruton Lease Extension Example Cases:

Gabriel, Bruton, Somerset

During the course of the last few months Gabriel, came dangerously near to the 80-year mark with the lease on his purpose- built flat in Bruton. Having bought his flat 19 years previously, the lease term was of little importance. Thankfully, he recognised he would soon be paying an inflated amount for Extending the lease. Gabriel was able to extend his lease at the eleventh hour in July. Gabriel and the freeholder subsequently agreed on a premium of £6,000 . If the lease had dropped to less than eighty years, the premium would have escalated by at least £1,050.

Bruton case:

Last Christmas we were called by Dr S Mason , who owned a basement flat in Bruton in June 1999. The question was if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Similar flats in Bruton with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 collected monthly. The lease lapsed in 2099. Given that there were 73 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.

Bruton case:

In 2010 we were called by Mr Jack Young who, having bought a ground floor flat in Bruton in September 2002. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Identical residencies in Bruton with an extended lease were valued around £240,600. The mid-range amount of ground rent was £60 collected per annum. The lease ended in 2088. Considering the 62 years left we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of fees.