Why you should commence your Newton Ferrers lease extension

Top reasons for lease extension now:

A Newton Ferrers leasehold property depreciates with the years remaining on the lease.

Newton Ferrers leases on residential properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Newton Ferrers will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain circumstances you may not qualify. There are also strict timetables and procedures to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

Leasehold properties in Newton Ferrers with in excess of one hundred years outstanding on the lease are often regarded as a ‘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 buying the freehold unless savings on ground rent and maintenance charges justify it.

Lending institutions may decide not to grant a mortgage on a short lease

Nearly all banks and building societies require a lengthy amount of time left on any leasehold residence before they will contemplate it as adequate security. Even if you don't need a mortgage, you should be conscious that it is probable that someone wanting to acquire your property in the future might well do, so if they are unable to secure a mortgage, then the value of your property could be adversely impacted. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are prepared to accept

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

The lawyers that we work with undertake Newton Ferrers 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.

Newton Ferrers Lease Extension Case Studies:

Harry, Newton Ferrers, Devon,

Harry owned a studio flat in Newton Ferrers on the market with a lease of a little over 59 years unexpired. Harry informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Harry to exercise his statutory right. Harry obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.

Newton Ferrers case:

Last Christmas we were approach by Mrs Daisy Cox , who completed a one bedroom apartment in Newton Ferrers in March 2001. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar residencies in Newton Ferrers with an extended lease were worth £210,600. The average amount of ground rent was £45 invoiced every twelve months. The lease concluded on 6 July 2088. Considering the 62 years outstanding we estimated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of professional charges.

Newton Ferrers case:

Dr Harry Mason took over the lease of a garden flat in Newton Ferrers in August 2004. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Similar residencies in Newton Ferrers with an extended lease were valued about £265,000. The mid-range amount of ground rent was £50 billed yearly. The lease ended on 14 January 2099. Considering the 73 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.