Why you should commence your Padstow lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3> Top reasons for lease extension now:
</h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/padstow">Padstow</a> lease depreciates with the years remaining on the lease.
</h4>
<p> With a long leasehold property in Padstow, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Residents in Padstow with a lease drawing near to 81 years left should seriously think of extending it sooner rather than later. When the lease term has under 80 years left, under the relevant legislation the landlord can calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is due. <h4>An extended lease is almost the same value as a freehold</h4>
<p> It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
<h4>Banks and Building Societies may decide not to issue a mortgage on a short lease</h4> Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to get jittery at around 75 years. This will be problematic as and when you need to market or remortgage your property as it will be practically unmortgageable. Even though you may have no imminent plan to sell but when you do your purchaser will need to hold off for a couple of years before they can initiate the legal procedures for a lease extension.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
</tr>
<tr>
<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
</tr>
<tr>
<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
</tr>
<tr>
<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
</tr>
<tr>
<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
</tr>
</tbody>
</table>
</div>
</div>
<h4> Get in touch with one of our Padstow lease extension solicitors or enfranchisement solicitors
</h4>
<p> Irrespective of whether you are a tenant or a freeholder in Padstow,the lease extension solicitors 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 Padstow valuers.
<h4>
Padstow Lease Extension Example Cases:
</h4>
<h5> Abbie, Padstow, Cornwall,</h5>
<p> In the wake of eight months of unsuccessful negotiations with the freeholder of her garden flat in Padstow, Abbie initiated the lease extension process just as her lease was nearing the crucial 80-year mark. The lease extension was concluded in September 2014. The landlord’s fees were negotiated to less than 650 GBP.
<h5>Padstow case:</h5>
<p>
In 2013 we were phoned by Mr Jasper Smith who, having took over the lease of a garden apartment in Padstow in January 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparative premises in Padstow with a long lease were in the region of £300,000. The average ground rent payable was £50 collected quarterly. The lease ran out on 9 May 2101. Considering the 75 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
<h5>Padstow case:</h5>
<p>
In 2009 we were contacted by Dr T Collins who, having was assigned a lease of a garden apartment in Padstow in February 1995. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Identical homes in Padstow with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 invoiced monthly. The lease terminated on 8 March 2090. Taking into account 64 years left we estimated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including costs.
</div>