Why you should start your Redland lease extension

Top reasons for lease extension now:

Increase your lease and increase your Redland property value

It’s an underpublicised certainty that a Redland residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Redland property market.Once your lease nears 85ish years, you should start considering 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 slips lower than eighty years - otherwise a higher amount will be payable. Most flat owners in Redland will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.

Redland property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Redland with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.

Lending institutions may not finance a property with a short lease

Lenders are making their criteria more stringent and many now require flats to have a minimum of 60 if not 70 years remaining once the mortgage has expired. Considering a number of flats in Redland were created in the fifties, sixties and seventies this means many now need to be extended if they if they are to be mortgageable.

What makes us experts in Redland lease extensions?

The conveyancers that we work with undertake Redland 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 conveyancer we work with provide it.

Redland Lease Extension Case Summaries:

Jayden, Redland, Bristol

Two years ago Jayden, started to get near to the 80-year mark with the lease on his garden apartment in Redland. Having bought his flat two decades ago, the lease term was of no concern. As luck would have it, he noticed he would soon be paying an escalated premium for a lease extension. Jayden was able to extend his lease just ahead of time in March. Jayden and the landlord who owned the flat above eventually agreed on sum of £6,000 . If he had missed the deadline, the sum would have increased by a minimum £925.

Redland case:

Ms R Jones acquired a first floor apartment in Redland in February 2004. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Identical residencies in Redland with a long lease were in the region of £256,600. The average ground rent payable was £60 billed monthly. The lease lapsed in 2078. Considering the 52 years outstanding we calculated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 plus expenses.

Redland case:

Mrs Alisha Morgan bought a studio flat in Redland in June 2008. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative residencies in Redland with a long lease were worth £218,000. The average amount of ground rent was £45 collected per annum. The lease ran out on 19 October 2089. Considering the 63 years unexpired we calculated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of legals.