Main reasons to start your Bude lease extension

Top reasons for lease extension now:

Increase your lease and increase your Bude property value

Bude leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the existing lease dips under eighty years - otherwise a higher premium will be due. Flat owners in Bude will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s sensible to be guided by a lawyer during the process.

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

Leasehold properties in Bude with in excess of 100 years remaining 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 situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders will not issue a mortgage on a short lease

Almost all mortgage companies will be unwilling to lend on a lease with under seventy years left to run - although this varies between mortgage companies. A purchaser will likely find it difficult in obtaining a mortgage and this will result in your Bude property being difficult to sell or to obtain finance on.

What makes us experts in Bude lease extensions?

The conveyancers that we work with handle Bude 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 conveyancer we work with provide it.

Bude Lease Extension Case Summaries:

Kyle, Bude, Cornwall

Two years ago Kyle, started to get near to the eighty-year mark with the lease on his studio apartment in Bude. In buying his flat two decades ago, the length of the lease was of little bearing. Luckily, he became aware that he would soon be paying way over the odds for Extending the lease. Kyle extended the lease just in the nick of time in August. Kyle and the landlord eventually agreed on a premium of £5,000 . If the lease had gone below eighty years, the sum would have become more costly by at least £1,100.

Bude case:

In 2009 we were called by Mr R Rivera who, having owned a purpose-built flat in Bude in June 2007. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Similar premises in Bude with a long lease were in the region of £191,400. The average amount of ground rent was £55 billed quarterly. The lease came to a finish in 2080. Having 54 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 plus professional charges.

Bude case:

In 2014 we were e-mailed by Mr and Mrs. Y Wilson who, having owned a recently refurbished apartment in Bude in January 2001. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Identical properties in Bude with a long lease were valued around £295,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease came to a finish in 2100. Given that there were 74 years left we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.