Why you should start your Tedburn St Mary lease extension

Main reasons to commence your Tedburn St Mary lease extension today:

Increase your lease and increase your Tedburn St Mary property value

It’s a harsh truth that a Tedburn St Mary residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Tedburn St Mary property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term dips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Tedburn St Mary will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.

Tedburn St Mary property with a lease extension is almost the same value as a freehold

Leasehold properties in Tedburn St Mary 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 reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions may not loan monies with a short lease

Nearly all banks and building societies insist on a lengthy amount of time left on a leasehold property before they will consider lending on it. Even if you don't require a mortgage, you should be mindful that it is reasonable to assume that someone intending to buy your property in the future might well do, so in the event that they are not able to obtain a mortgage, then the financial worth of the property will likely suffer. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are prepared to grant a mortgage on

Why use us for your lease extension in Tedburn St Mary?

Irrespective of whether you are a tenant or a freeholder in Tedburn St Mary,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 Tedburn St Mary valuers.

Tedburn St Mary Lease Extension Case Studies:

Imogen, Tedburn St Mary, Devon,

In the wake of 6 months of lengthy discussions with the freeholder of her first floor apartment in Tedburn St Mary, Imogen started the lease extension process as the 80 year threshold was fast approaching. The transaction completed in October 2006. The landlord’s fees were restricted to under 600 GBP.

Tedburn St Mary case:

Last Spring we were e-mailed by Ms Amelia Ricardo , who took over the lease of a ground floor apartment in Tedburn St Mary in February 1995. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Comparative properties in Tedburn St Mary with 100 year plus lease were in the region of £191,400. The average amount of ground rent was £55 collected every twelve months. The lease ran out on 27 January 2080. Considering the 54 years outstanding we estimated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of professional charges.

Tedburn St Mary case:

In 2012 we were phoned by Dr O Walker who, having purchased a one bedroom apartment in Tedburn St Mary in November 2006. The question was if we could approximate the premium could be for a 90 year lease extension. Identical premises in Tedburn St Mary with 100 year plus lease were valued about £295,000. The mid-range ground rent payable was £45 invoiced monthly. The lease termination date was on 7 February 2100. Having 74 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.