Why you should start your Bardsley lease extension

Top reasons for lease extension now:

Increase your lease and increase your Bardsley property value

Bardsley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Bardsley tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Bardsley you must check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.

Lenders may not grant a mortgage with a short lease

Many banks and building societies will be unwilling to lend on a lease with less than 70 years unexpired - although this varies from lender to lender. A buyer will likely encounter difficulties in obtaining a mortgage and this could result in your Bardsley property becoming difficult to dispose of or to obtain finance on.

What makes us experts in Bardsley lease extensions?

The conveyancing solicitors that we work with handle Bardsley 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.

Bardsley Lease Extension Case Studies:

Nicole, Bardsley, Greater Manchester,

After lengthy discussions with the freeholder of her basement flat in Bardsley, Nicole commenced the lease extension process as the eighty year mark was fast approaching. The transaction was finalised in July 2007. The landlord’s costs were kept to an absolute minimum.

Bardsley case:

In 2012 we were called by Dr Robyn Adams who, having took over the lease of a first floor apartment in Bardsley in September 1999. We are asked if we could estimate the premium could be to extend the lease by ninety years. Comparable residencies in Bardsley with 100 year plus lease were valued around £206,200. The average amount of ground rent was £60 invoiced quarterly. The lease expiry date was in 2082. Having 56 years left we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.

Bardsley case:

In 2014 we were e-mailed by Ms Gemma Clarke who, having took over the lease of a purpose-built flat in Bardsley in November 2004. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Comparative flats in Bardsley with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 collected per annum. The lease finished in 2102. Having 76 years outstanding we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.