Top reasons for Stoke Bishop lease extension

Main reasons to start your Stoke Bishop lease extension today:

Increase your lease and increase your Stoke Bishop property value

The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Stoke Bishop may extend the lease for an additional ninety years under legislation. Do think carefully before delaying your Stoke Bishop lease extension. Shelving the costs now simply increases the price you will eventually have to pay to extend the lease.

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

It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same 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 will not grant a mortgage on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past banks were content with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Stoke Bishop lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with undertake Stoke Bishop 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 conveyancing solicitor we work with provide it.

Stoke Bishop Lease Extension Case Summaries:

Ollie, Stoke Bishop, Bristol,

Ollie owned a 2 bedroom apartment in Stoke Bishop on the market with a lease of fraction over 61 years unexpired. Ollie on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ollie to invoke his statutory right. Ollie procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.

Stoke Bishop case:

Last Summer we were contacted by Dr D Evans , who completed a one bedroom flat in Stoke Bishop in August 2005. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Similar homes in Stoke Bishop with an extended lease were in the region of £168,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease ran out on 26 September 2081. Considering the 55 years unexpired we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus fees.

Stoke Bishop case:

In 2011 we were called by Dr D Norbert who, having completed a ground floor flat in Stoke Bishop in August 1995. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical premises in Stoke Bishop with a long lease were valued about £235,200. The average ground rent payable was £45 collected quarterly. The lease ran out on 4 May 2092. Having 66 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.