Main reasons to commence your Topsham lease extension

Top reasons for lease extension now:

Increase your lease and increase your Topsham property value

Topsham leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Topsham enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Topsham you really ought to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

Topsham property with a lease extension has roughly the same value as a freehold

Leasehold properties in Topsham with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.

Lending institutions may not lend on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has meant the unexpired lease term required by lenders has increased. Historically mortgage companies were content with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

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 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 Topsham valuers.

Topsham Lease Extension Case Summaries:

Shannon, Topsham, Devon,

Following unsuccessful negotiations with the freeholder of her first floor flat in Topsham, Shannon initiated the lease extension process as the 80 year threshold was quickly coming. The transaction completed in September 2015. The landlord’s fees were kept to an absolute minimum.

Topsham case:

Ms G Vincent was assigned a lease of a basement flat in Topsham in June 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Topsham with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease expired in 2101. Considering the 75 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.

Topsham case:

Last Winter we were e-mailed by Mr Jake James , who bought a ground floor apartment in Topsham in March 2010. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Topsham with 100 year plus lease were in the region of £250,400. The average amount of ground rent was £65 billed every twelve months. The lease ended in 2090. Given that there were 64 years unexpired we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of costs.