Top reasons for Barnstaple lease extension

Main reasons to commence your Barnstaple lease extension today:

A Barnstaple leasehold property depreciates with the years remaining on the lease.

Chances are that if you own a flat in Barnstaple you actually own a long leasehold interest over your property

Barnstaple property with a lease extension is almost the same value as a freehold

Leasehold premises in Barnstaple with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Mortgage lenders will not loan monies with a short lease

The propensity since 2008 has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically mortgage companies were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

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

The conveyancing solicitors that we work with procure Barnstaple 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 lawyer we work with provide it.

Barnstaple Lease Extension Case Summaries:

Freddie, Barnstaple, Devon

Half a year ago Freddie, started to get near to the eighty-year mark with the lease on his basement flat in Barnstaple. Having purchased his flat two decades ago, the lease term was of little concern. Luckily, he recognised he needed to take steps soon on a lease extension. Freddie was able to extend his lease at the eleventh hour last March. Freddie and the freeholder via the management company in the end agreed on sum of £5,500 . If the lease had dropped to less than 80 years, the sum would have gone up by at least £900.

Barnstaple case:

Last Christmas we were phoned by Mr and Mrs. L Morgan , who moved into a garden flat in Barnstaple in February 2001. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable homes in Barnstaple with an extended lease were in the region of £270,000. The average ground rent payable was £55 billed every twelve months. The lease finished in 2100. Considering the 74 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.

Barnstaple case:

Mrs W Taylor completed a ground floor apartment in Barnstaple in March 2008. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar flats in Barnstaple with 100 year plus lease were valued about £166,400. The average amount of ground rent was £60 billed monthly. The lease expiry date was in 2080. Having 54 years remaining we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus professional charges.