Why you should commence your Helston lease extension

Top reasons for lease extension now:

Increase your lease and increase your Helston property value

The nearer a domestic lease in Helston nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, over 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. Many flat owners in Helston will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

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

Leasehold residencies in Helston with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may not loan monies with a short lease

Many mortgage lenders insist on a lengthy amount of time remaining on any leasehold residence before they will contemplate it as adequate security. Regardless of whether you require a mortgage, you should be conscious that it is probable that someone intending to acquire your property in the future might well do, so in the event that they can't secure a mortgage, then the value of your property will likely suffer. In the last decade many mortgage lenders have increased the required minimum lease length that they are prepared to lend on

Why use us for your lease extension in Helston?

The lawyers that we work with handle Helston 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 conveyancer we work with provide it.

Helston Lease Extension Case Studies:

Rebecca, Helston, Cornwall,

Off the back of unsuccessful discussions with the freeholder of her purpose-built apartment in Helston, Rebecca commenced the lease extension process just as the lease was coming close to the all-important 80-year mark. The transaction was finalised in January 2005. The freeholder’s fees were restricted to approximately 450 pounds.

Helston case:

Last May we were approach by Dr B Martinez , who moved into a one bedroom flat in Helston in June 1999. The question was if we could estimate the premium would likely be for a 90 year lease extension. Similar premises in Helston with an extended lease were valued about £257,800. The average amount of ground rent was £65 invoiced quarterly. The lease came to a finish in 2091. Taking into account 65 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 not including expenses.

Helston case:

In 2013 we were approached by Dr Lily André who, having owned a first floor apartment in Helston in June 1999. We are asked if we could estimate the price would be for a 90 year lease extension. Similar homes in Helston with 100 year plus lease were in the region of £191,400. The average amount of ground rent was £55 collected annually. The lease terminated on 23 June 2080. Taking into account 54 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 plus legals.