Why you should commence your Newton Ferrers lease extension

Why you should commence your Newton Ferrers lease extension today:

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

Newton Ferrers leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Newton Ferrers tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Newton Ferrers you should check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may not lend with a short lease

Mortgage companies do not lend on short residential leases. You are likely to encounter problems where you want to sell your flat in Newton Ferrers if the remaining term of your lease is less than the criteria set by most mortgage companies. Different lenders have varying requirements but generally theyrequire an unexpired term of at least seventy years.

Why use us for your lease extension in Newton Ferrers?

Regardless of whether you are a tenant or a landlord in Newton Ferrers,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 experience and the close ties they enjoy with Newton Ferrers valuers.

Newton Ferrers Lease Extension Case Studies:

Kate, Newton Ferrers, Devon,

After unsuccessful negotiations with the freeholder of her purpose-built apartment in Newton Ferrers, Kate started the lease extension process as the 80 year mark was swiftly nearing. The legal work was finalised in April 2009. The freeholder’s costs were kept to an absolute minimum.

Newton Ferrers case:

Mr and Mrs. T Taylor was assigned a lease of a one bedroom flat in Newton Ferrers in October 2009. The dilemma was if we could approximate the premium would likely be to extend the lease by ninety years. Similar homes in Newton Ferrers with 100 year plus lease were valued about £191,000. The average amount of ground rent was £65 billed every twelve months. The lease finished on 13 February 2084. Having 58 years remaining we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 not including costs.

Newton Ferrers case:

Last Spring we were contacted by Mrs Alisha Lefèvre , who owned a basement flat in Newton Ferrers in November 1999. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Newton Ferrers with an extended lease were worth £250,000. The mid-range ground rent payable was £50 collected monthly. The lease expired in 2095. Considering the 69 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.