Top reasons for Bury St Edmunds lease extension

Top reasons for lease extension now:

Increase your lease and increase your Bury St Edmunds property value

On the balance of probabilities where you own a flat in Bury St Edmunds you actually own a long leasehold interest over your property

Bury St Edmunds property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may decide not to loan monies with 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 meant the minimum number of years remaining under the lease required by lenders has increased. Historically mortgage companies were content with 25 years plus the term of the loan - typically fifty 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.

What makes us experts in Bury St Edmunds lease extensions?

The conveyancing solicitors that we work with undertake Bury St Edmunds 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.

Bury St Edmunds Lease Extension Example Cases:

Stanley, Bury St Edmunds, Suffolk,

Stanley was the the leasehold owner of a conversion apartment in Bury St Edmunds being sold with a lease of fraction over fifty eight years left. Stanley informally approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Stanley to exercise his statutory right. Stanley procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.

Bury St Edmunds case:

In 2011 we were contacted by Ms P Collins who, having took over the lease of a studio apartment in Bury St Edmunds in July 2008. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Comparable premises in Bury St Edmunds with 100 year plus lease were valued around £254,200. The mid-range ground rent payable was £60 invoiced per annum. The lease terminated on 22 January 2077. Having 51 years unexpired we approximated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 exclusive of professional charges.

Bury St Edmunds case:

In 2009 we were approached by Dr Alisha Brown who, having completed a one bedroom apartment in Bury St Edmunds in March 2000. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable premises in Bury St Edmunds with a long lease were worth £215,600. The average amount of ground rent was £45 collected quarterly. The lease finished on 6 February 2088. Given that there were 62 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus legals.