Main reasons to commence your Padstow lease extension

Why you should commence your Padstow lease extension today:

A Padstow lease depreciates with the years remaining on the lease.

Padstow 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 the lease gets more expensive. Most owners of residential leasehold property in Padstow enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Padstow you really ought to see if your lease has between seventy and ninety years left. There are good reasons why a Padstow leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is effected without delay

Padstow property with a lease extension is almost the same value as a freehold

Leasehold residencies in Padstow with over one hundred years unexpired on the lease are sometimes referred to as ‘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 purchasing the freehold unless savings on ground rent and service charges warrant it.

Lenders will not grant a mortgage on a short lease

Banks and building societies are distinct in their lending criteria. Some set the bar at seventy five years outstanding on the lease; others may be willing to lend with anything with more than 70 years. With less than sixty years, it may be challenging to obtain a mortgage in the first place.

What makes us experts in Padstow lease extensions?

Irrespective of whether you are a tenant or a freeholder in Padstow,the lease extension experts 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 Padstow valuers.

Padstow Lease Extension Case Studies:

Eliot, Padstow, Cornwall,

Eliot was the the leasehold proprietor of a studio flat in Padstow on the market with a lease of fraction over fifty eight years remaining. Eliot on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Eliot to exercise his statutory right. Eliot obtained expert advice and was able to make a more informed decision and handle with the matter and sell the property.

Padstow case:

Dr K Rivera moved into a first floor flat in Padstow in July 1999. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical homes in Padstow with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 collected annually. The lease elapsed in 2103. Given that there were 77 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.

Padstow case:

In 2011 we were called by Mr and Mrs. U Fournier who, having took over the lease of a one bedroom apartment in Padstow in July 2008. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Similar homes in Padstow with a long lease were in the region of £265,200. The mid-range ground rent payable was £65 invoiced annually. The lease ended on 7 March 2092. Given that there were 66 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 not including legals.