Main reasons to commence your Burbage lease extension

Why you should commence your Burbage lease extension today:

Increase your lease and increase your Burbage property value

It’s an underpublicised certainty that a Burbage residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Burbage property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be due. Most flat owners in Burbage will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Lenders will not lend on a short lease

Many mortgage companies insist on a lengthy amount of time left on a leasehold residence before they will consider it as adequate security. Regardless of whether you require a mortgage, you should be aware that it is likely that someone wanting to acquire your property in the future might well do, so in the event that they can't get a mortgage, then the financial worth of your property will likely suffer. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are willing to accept

What makes us experts in Burbage lease extensions?

The conveyancing solicitors that we work with undertake Burbage 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 lawyer we work with provide it.

Burbage Lease Extension Example Cases:

Hugo, Burbage, Leicestershire

In recent months Hugo, came dangerously near to the 80-year threshold with the lease on his garden flat in Burbage. In buying his home two decades ago, the unexpired term was of minimal bearing. Thankfully, he recognised he would imminently be paying way over the odds for a lease extension. Hugo was able to extend his lease just under the wire in May. Hugo and the landlord eventually agreed on a premium of £5,500 . If he not met the deadline, the sum would have gone up by at least £850.

Burbage case:

Dr Daisy Lambert acquired a one bedroom flat in Burbage in July 2003. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative residencies in Burbage with a long lease were valued about £257,800. The average ground rent payable was £65 invoiced quarterly. The lease ended on 23 July 2091. Having 65 years left we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of fees.

Burbage case:

Mr Michael Leroy owned a first floor apartment in Burbage in April 2003. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar homes in Burbage with 100 year plus lease were valued around £191,400. The average ground rent payable was £55 collected yearly. The lease concluded on 24 October 2080. Considering the 54 years remaining we approximated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 plus professional charges.