Top reasons for Bulkington lease extension

Main reasons to commence your Bulkington lease extension today:

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

The market value of Bulkington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the remaining term is less than 80 years

Bulkington property with a lease extension is almost the same value as a freehold

Leasehold properties in Bulkington with more than 100 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 to be gained by buying the freehold unless savings on ground rent and estate charges merit it.

Banks and Building Societies may decide not to finance a property on a short lease

The trend since the credit crunch has been for mortgage companies 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 unexpired lease term required by mortgage companies has increased. In the past banks were content with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

The lawyers that we work with undertake Bulkington 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.

Bulkington Lease Extension Case Summaries:

Rachel, Bulkington, Warwickshire,

Subsequent to unsuccessful discussions with the landlord of her two bedroom apartment in Bulkington, Rachel commenced the lease extension process as the eighty year mark was swiftly approaching. The transaction was concluded in April 2005. The freeholder’s fees were restricted to less than five hundred pounds.

Bulkington case:

In 2012 we were phoned by Dr U Vincent who, having was assigned a lease of a one bedroom apartment in Bulkington in May 2012. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparative flats in Bulkington with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 invoiced per annum. The lease terminated on 20 March 2105. Having 80 years outstanding we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.

Bulkington case:

Last October we were called by Mr and Mrs. Y Simon , who completed a garden apartment in Bulkington in October 2002. We are asked if we could approximate the price would likely be for a 90 year lease extension. Similar homes in Bulkington with a long lease were worth £275,000. The average amount of ground rent was £45 invoiced annually. The lease finished on 21 May 2094. Given that there were 69 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.