Top reasons for Barnstaple lease extension

Top reasons for lease extension now:

Increase your lease and increase your Barnstaple property value

Barnstaple leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Barnstaple will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has started so it’s sensible to be guided by a lawyer during the process.

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

Leasehold residencies in Barnstaple with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Mortgage lenders may not loan monies with a short lease

The trend since 2008 has been for banks to tighten lending criteria across the board - this has extended to the property over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past mortgage companies were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in Barnstaple lease extensions?

Regardless of whether you are a tenant or a landlord in Barnstaple,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barnstaple valuers.

Barnstaple Lease Extension Example Cases:

Jacob, Barnstaple, Devon

Last year Jacob, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Barnstaple. In buying his home two decades ago, the lease term was of no relevance. Luckily, he noticed he needed to take action soon on a lease extension. Jacob extended the lease just ahead of time in March. Jacob and the landlord in the end settled on the final figure of £6,000 . If the lease had dropped below eighty years, the premium would have escalated by at least £1,000.

Barnstaple case:

Mr V García acquired a recently refurbished apartment in Barnstaple in January 2002. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparative flats in Barnstaple with 100 year plus lease were in the region of £280,000. The average ground rent payable was £55 invoiced every twelve months. The lease finished in 2104. Taking into account 78 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.

Barnstaple case:

Last Summer we were contacted by Dr Connor Lefèvre , who took over the lease of a basement flat in Barnstaple in November 1995. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Comparative residencies in Barnstaple with an extended lease were worth £191,000. The mid-range amount of ground rent was £65 billed monthly. The lease ran out in 2084. Taking into account 58 years as a residual term we approximated the premium to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of professional charges.