Main reasons to commence your Topsham lease extension

Why you should start your Topsham lease extension today:

A Topsham leasehold property depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Topsham. Inevitably, the period of lease left shortens over time. This may pass by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Topsham have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. You should give careful deliberation before putting off your Topsham lease extension. Holding off that expense now simply increases the price you will ultimately have to pay to extend your lease

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Lending institutions will not grant a mortgage with a short lease

Banks and building societies are tightening their criteria and many now require flats to have a minimum of sixty if not seventy years left at the expiry of the mortgage. As many flats in Topsham were created in the 1950s, 1960s and 1970s this means many now require lease extensions if they wish to get a mortgage.

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

Irrespective of whether you are a tenant or a freeholder in Topsham,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 Topsham valuers.

Topsham Lease Extension Case Studies:

Aaron, Topsham, Devon,

Aaron owned a high value apartment in Topsham being sold with a lease of just over 72 years remaining. Aaron informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Aaron to exercise his statutory right. Aaron obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.

Topsham case:

In 2011 we were e-mailed by Mr C Scott who, having was assigned a lease of a ground floor apartment in Topsham in June 1999. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative flats in Topsham with a long lease were worth £285,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease concluded in 2097. Considering the 71 years left we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.

Topsham case:

Last year we were approach by Dr Kai Morris , who took over the lease of a one bedroom flat in Topsham in October 2005. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparative premises in Topsham with 100 year plus lease were in the region of £225,800. The mid-range ground rent payable was £60 invoiced monthly. The lease finished on 21 February 2086. Considering the 60 years remaining we estimated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 not including expenses.