Why you should commence your Bury lease extension

Why you should start your Bury lease extension today:

Increase your lease and increase your Bury property value

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Bury. Inevitably, the term of lease remaining reduces as time goes by. This is often overlooked and only becomes a problem when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in Bury have the legal entitlement to extend the lease for an additional 90 years in accordance with legislation. Please give careful consideration before delaying your Bury lease extension. Holding off the cost now likely increases the price you will eventually have to pay for a lease extension

An extended lease is almost the same value as a freehold

Leasehold properties in Bury with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders will not issue a mortgage on a short lease

Many banks and building societies will not grant a mortgage on a lease with less than seventy years left to run - although this varies between mortgage companies. A purchaser will no doubt encounter difficulties in obtaining a mortgage and this will result in your Bury property being difficult to sell or refinance.

What makes us experts in Bury lease extensions?

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

Bury Lease Extension Example Cases:

Logan, Bury, Greater Manchester

16 months ago Logan, started to get close to the 80-year mark with the lease on his studio flat in Bury. In buying his home 19 years previously, the unexpired term was of minimal concern. Thankfully, he noticed he would imminently be paying way over the odds for Extending the lease. Logan extended the lease just under the wire in September. Logan and the freeholder via the managing agents subsequently settled on the final figure of £6,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £900.

Bury case:

In 2010 we were called by Mr and Mrs. E Morel who, having was assigned a lease of a first floor apartment in Bury in June 2000. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Similar homes in Bury with a long lease were worth £233,200. The mid-range ground rent payable was £60 billed annually. The lease expired on 16 February 2087. Considering the 61 years remaining we calculated the premium to the landlord to extend the lease to be between £22,800 and £26,400 plus expenses.

Bury case:

Mr and Mrs. N Laurent owned a purpose-built apartment in Bury in March 1997. We are asked if we could approximate the price could be to prolong the lease by 90 years. Similar residencies in Bury with a long lease were in the region of £166,800. The average amount of ground rent was £50 collected every twelve months. The lease finished on 11 September 2076. Considering the 50 years remaining we estimated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus costs.