Top reasons for Looe lease extension

Why you should start your Looe lease extension today:

A Looe lease depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Looe depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to commence the lease extension process when the lease still has 82 years to run so that formalities can be addressed prior to the 80 year cut off point. Leasehold Reform legislation enables Looe qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

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

It is conventional wisdom that a property with over 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 worth the same as a freehold for many years in the future.

Banks and Building Societies may not finance a property with a short lease

Many mortgage lenders will be unwilling to lend on a lease with less than 70 years unexpired - although this varies between mortgage companies. A purchaser will undoubtedly encounter difficulties to obtain a mortgage and this could result in your Looe property being difficult to sell or to obtain finance on.

What makes us experts in Looe lease extensions?

The conveyancers that we work with undertake Looe 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.

Looe Lease Extension Example Cases:

Chloe, Looe, Cornwall,

Trailing protracted negotiations with the landlord of her garden apartment in Looe, Chloe initiated the lease extension process as the eighty year threshold was swiftly nearing. The transaction completed in January 2011. The freeholder’s fees were kept to an absolute minimum.

Looe case:

In 2014 we were called by Mr Andrew Patel who, having was assigned a lease of a one bedroom flat in Looe in August 2010. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical residencies in Looe with an extended lease were valued about £280,000. The mid-range ground rent payable was £45 collected every twelve months. The lease elapsed in 2096. Considering the 70 years outstanding we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.

Looe case:

Mrs N Bennett completed a ground floor apartment in Looe in November 2012. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable properties in Looe with a long lease were valued around £223,400. The average ground rent payable was £60 invoiced per annum. The lease finished in 2085. Considering the 59 years unexpired we calculated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of professional charges.