Main reasons to start your Bungay lease extension

Top reasons for lease extension now:

Increase your lease and increase your Bungay property value

Bungay leases on residential properties are gradually losing value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Bungay will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain situations you may not qualify. There are prescribed timetables and procedures to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.

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

It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Banks and Building Societies may not finance a property with a short lease

Banks and Building Societies have set criteria when lending monies secured on leasehold property. Many will simply refuse lend at all once the residual lease term drops under a certain unexpired lease term. Many Mortgage lenders will not consider property with a remaining term of less than 75 years suitable security. As well as impacting your ability to sell, it is also relevant where you are intending to refinance your Bungay home.

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

Retaining our service gives you increased control over the value of your Bungay leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Bungay Lease Extension Case Studies:

Abigail, Bungay, Suffolk,

After lengthy negotiations with the freeholder of her first floor apartment in Bungay, Abigail commenced the lease extension process just as her lease was coming close to the all-important 80-year threshold. The legal work was finalised in April 2005. The freeholder’s charges were restricted to a tad over 600 pounds.

Bungay case:

Mr and Mrs. U Campbell completed a newly refurbished flat in Bungay in October 2008. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative residencies in Bungay with an extended lease were worth £240,600. The average amount of ground rent was £60 invoiced monthly. The lease ended on 22 September 2088. Considering the 62 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of fees.

Bungay case:

Mr and Mrs. B Lambert purchased a recently refurbished apartment in Bungay in February 1998. The question was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative flats in Bungay with an extended lease were valued about £174,200. The mid-range amount of ground rent was £55 collected every twelve months. The lease ran out in 2077. Considering the 51 years unexpired we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.