Top reasons for South Brent lease extension

Why you should start your South Brent lease extension today:

A South Brent lease depreciates with the years remaining on the lease.

Unfortunately that a South Brent residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the South Brent property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be payable. Most flat owners in South Brent will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the formalities.

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

Leasehold residencies in South Brent with over 100 years outstanding 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lending institutions may decide not to finance a property with a short lease

Nearly all mortgage companies will not grant a mortgage on a lease with less than seventy years unexpired - although this varies between mortgage companies. A purchaser will no doubt encounter difficulties in obtaining a mortgage and this could result in your South Brent property being difficult to sell or refinance.

What makes us experts in South Brent lease extensions?

The lawyers that we work with undertake South Brent lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

South Brent Lease Extension Example Cases:

Millie, South Brent, Devon,

Following unsuccessful negotiations with the freeholder of her studio apartment in South Brent, Millie started the lease extension process as the 80 year mark was fast approaching. The transaction was finalised in May 2015. The freeholder’s costs were kept to an absolute minimum.

South Brent case:

In 2011 we were phoned by Mr and Mrs. F Ward who, having moved into a purpose-built flat in South Brent in March 1997. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Comparative properties in South Brent with a long lease were worth £220,400. The mid-range ground rent payable was £45 billed monthly. The lease concluded on 19 February 2090. Given that there were 64 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of professional charges.

South Brent case:

Mr and Mrs. O Sánchez was assigned a lease of a basement apartment in South Brent in April 2004. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparable premises in South Brent with an extended lease were worth £270,000. The mid-range ground rent payable was £55 collected per annum. The lease ran out on 22 February 2101. Considering the 75 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.