Why you should commence your Newton Ferrers lease extension

Main reasons to start 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 losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Newton Ferrers enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Newton Ferrers you would be well advised to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

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

Leasehold premises in Newton Ferrers with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Mortgage lenders may not finance a property with a short lease

Banks and building societies are tightening their criteria and many now expect flats to have at least 60 if not 70 years remaining at the end of the mortgage. Given that many flats in Newton Ferrers were created in the 1950s, 1960s and 1970s this means many now need to be extended if they if they are to be mortgageable.

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

The conveyancing solicitors that we work with procure 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:

Elizabeth, Newton Ferrers, Devon,

Following lengthy correspondence with the landlord of her basement flat in Newton Ferrers, Elizabeth started the lease extension process just as her lease was nearing the all-important eighty-year deadline. The lease extension was concluded in May 2008. The landlord’s charges were negotiated to less than four hundred pounds.

Newton Ferrers case:

Mr and Mrs. S Baker moved into a ground floor flat in Newton Ferrers in August 2004. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Similar homes in Newton Ferrers with a long lease were valued around £166,400. The mid-range ground rent payable was £60 billed every twelve months. The lease elapsed on 18 June 2080. Taking into account 54 years remaining we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 plus legals.

Newton Ferrers case:

Last year we were approach by Mr B Vincent , who took over the lease of a studio flat in Newton Ferrers in August 2011. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical properties in Newton Ferrers with an extended lease were worth £227,800. The average amount of ground rent was £45 collected yearly. The lease terminated on 4 April 2091. Considering the 65 years as a residual term we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of costs.