Why you should start your Bungay lease extension

Why you should commence your Bungay lease extension today:

Increase your lease and increase your Bungay property value

With a residential leasehold premises in Bungay, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years left. Anyone in Bungay with a lease approaching 81 years left should seriously think of extending it sooner as opposed to later. When the lease term has under eighty years left, under the current statute the landlord is entitled to calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to issue a mortgage with a short lease

Mortgage lenders have set criteria when lending funds charged on leasehold property. Some will simply refrain from lending at all once the residual lease term falls below a certain unexpired lease term. Many Mortgage lenders will not regard property with an unexpired term of less than 75 years suitable security. As well as this being important when selling, it is also relevant if you are intending to remortgage your Bungay property.

What makes us experts in Bungay lease extensions?

The lawyers that we work with procure Bungay 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.

Bungay Lease Extension Example Cases:

Jude, Bungay, Suffolk

In recent months Jude, came precariously near to the 80-year mark with the lease on his one bedroom apartment in Bungay. In buying his home two decades ago, the lease term was of no bearing. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Jude extended the lease at the eleventh hour last January. Jude and the landlord who owned the flat above ultimately settled on the final figure of £5,000 . If he had missed the deadline, the amount would have increased by at least £1,150.

Bungay case:

Dr Ben Clarke was assigned a lease of a first floor flat in Bungay in April 1995. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparable properties in Bungay with an extended lease were in the region of £166,800. The mid-range amount of ground rent was £50 collected monthly. The lease elapsed on 3 March 2076. Considering the 50 years left we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of fees.

Bungay case:

In 2010 we were phoned by Dr J Cooper who, having acquired a newly refurbished apartment in Bungay in February 2000. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative premises in Bungay with 100 year plus lease were valued around £280,000. The average ground rent payable was £45 billed per annum. The lease expiry date was on 12 January 2096. Given that there were 70 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.