Main reasons to start your Bures lease extension

Main reasons to start your Bures lease extension today:

Increase your lease and increase your Bures property value

The market value of a leasehold property in Bures depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that formalities can be concluded in advance of the 80 year mark. Leasehold Reform legislation enables Bures qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.

Lending institutions will not issue a mortgage on a short lease

The trend since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies were content with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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

Lease extensions in Bures can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Bures lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Bures Lease Extension Example Cases:

Kate, Bures, Suffolk,

Subsequent to protracted negotiations with the freeholder of her garden flat in Bures, Kate commenced the lease extension process as the eighty year threshold was fast advancing. The lease extension was finalised in May 2008. The landlord’s costs were kept to an absolute minimum.

Bures case:

Last month we were e-mailed by Mr and Mrs. L Thompson , who acquired a purpose-built flat in Bures in June 1999. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative premises in Bures with an extended lease were in the region of £280,000. The average amount of ground rent was £55 billed per annum. The lease came to a finish on 14 January 2103. Taking into account 77 years unexpired we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.

Bures case:

In 2010 we were approached by Mr and Mrs. F Gómez who, having acquired a studio flat in Bures in May 2006. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Identical flats in Bures with an extended lease were valued about £183,600. The mid-range amount of ground rent was £65 collected every twelve months. The lease finished on 22 November 2083. Having 57 years left we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.