Why you should start your Bury lease extension

Why you should commence your Bury lease extension today:

A Bury lease depreciates with the years remaining on the lease.

Unfortunately that a Bury residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Bury property prices.Where your lease has approximately 90 years left, 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 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Bury will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the process.

Bury property with a lease extension is almost the same value as a freehold

Leasehold residencies in Bury with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions will not lend on a short lease

Lending institutions have set criteria when lending monies secured on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term drops lower than a certain unexpired lease term. Many Banks and Building Societies will not consider property with a remaining below seventy years suitable security. As well as this being important when selling, it is also relevant if you are intending to refinance your Bury property.

Why use us for your lease extension in Bury?

Irrespective of whether you are a tenant or a landlord in Bury,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bury valuers.

Bury Lease Extension Example Cases:

Archie, Bury, Greater Manchester

Last year Archie, started to get near to the 80-year mark with the lease on his two bedroom apartment in Bury. Having bought his flat two decades ago, the unexpired term was of little bearing. Luckily, he recognised he would soon be paying an inflated amount for a lease extension. Archie was able to extend his lease just in the nick of time last March. Archie and the freeholder via the management company ultimately settled on a premium of £5,000 . If he had missed the deadline, the amount would have increased by at least £1,050.

Bury case:

In 2010 we were phoned by Mr B Leroy who, having acquired a ground floor apartment in Bury in May 1999. The dilemma was if we could estimate the price would be to prolong the lease by 90 years. Similar properties in Bury with 100 year plus lease were in the region of £210,000. The mid-range ground rent payable was £50 billed monthly. The lease ended in 2106. Taking into account 80 years remaining we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.

Bury case:

Last Christmas we were e-mailed by Dr Isaac James , who bought a garden flat in Bury in September 1999. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Identical flats in Bury with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £45 collected annually. The lease elapsed in 2095. Considering the 69 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.