Main reasons to commence your Bury lease extension

Top reasons for lease extension now:

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

Bury leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Bury will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies may decide not to lend with a short lease

Many mortgage companies require a lengthy amount of time remaining on a leasehold residence before they will consider providing a mortgage on it. Even if you don't require a mortgage, you should keep in mind that it is likely that someone wanting to purchase your property in the future might well do, so where they are unable to obtain a mortgage, then the market price of the property will likely suffer. Since 2008 the majority of banks and building societies have increased the required minimum lease length that they are prepared to accept

What makes us experts in Bury lease extensions?

Using our service gives you enhanced control over the value of your Bury leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Bury Lease Extension Example Cases:

Henry, Bury, Greater Manchester

Last year Henry, started to get close to the 80-year threshold with the lease on his one bedroom apartment in Bury. In buying his flat two decades ago, the unexpired term was of no bearing. As luck would have it, he noticed he needed to take action soon on Extending the lease. Henry arranged for a lease extension just under the wire last July. Henry and the landlord who owned the flat above ultimately agreed on a premium of £5,000 . If he had missed the deadline, the figure would have escalated by at least £1,125.

Bury case:

Dr Chelsea Howard was assigned a lease of a basement apartment in Bury in July 2011. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparative premises in Bury with a long lease were valued about £184,000. The mid-range amount of ground rent was £55 billed yearly. The lease expiry date was on 28 October 2079. Considering the 53 years unexpired we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus fees.

Bury case:

In 2014 we were phoned by Mr and Mrs. W Green who, having purchased a garden flat in Bury in March 2004. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical flats in Bury with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 billed yearly. The lease elapsed in 2099. Given that there were 73 years outstanding we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.