Top reasons for 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.

The only way is down when it comes to Newton Ferrers lease terms. Newton Ferrers leaseholds that have a lease term shorter than 80 years will reduce in market price even faster, and the cost to extend your lease will increase.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Mortgage lenders may decide not to grant a mortgage with a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. In the past lenders were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

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

Newton Ferrers Lease Extension Example Cases:

Archie, Newton Ferrers, Devon

Last year Archie, started to get close to the eighty-year mark with the lease on his leasehold apartment in Newton Ferrers. In buying his home 18 years previously, the lease term was of minimal interest. by good luck, he recognised he needed to take steps soon on a lease extension. Archie arranged for a lease extension at the eleventh hour last August. Archie and the freeholder via the management company in the end agreed on a premium of £5,500 . If he failed to meet the deadline, the premium would have escalated by at least £1,125.

Newton Ferrers case:

Mr and Mrs. Y Williams purchased a purpose-built apartment in Newton Ferrers in June 2001. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Similar properties in Newton Ferrers with a long lease were in the region of £208,200. The average amount of ground rent was £65 collected every twelve months. The lease ran out on 20 April 2087. Having 61 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus expenses.

Newton Ferrers case:

Ms Jodie Rodríguez purchased a garden flat in Newton Ferrers in January 1998. The question was if we could estimate the price would be to prolong the lease by an additional years. Comparative premises in Newton Ferrers with a long lease were in the region of £260,000. The mid-range amount of ground rent was £50 collected yearly. The lease elapsed in 2098. Taking into account 72 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.