Top reasons for Looe lease extension

Main reasons to start your Looe lease extension today:

Increase your lease and increase your Looe property value

Looe leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the current lease dips lower than 80 years - otherwise a higher premium will be due. Flat owners in Looe will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some situations you may not be entitled. There are prescribed deadlines and formalities to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.

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

It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Mortgage lenders may not grant a mortgage on a short lease

Banks and Building Societies have set criteria when loaning monies secured on leasehold property. Some will simply refrain from lending at all once the remaining lease term goes under a specified unexpired lease term. Many Lending institutions will not regard property with an unexpired term of less than seventy years suitable security. As well as this being important when selling, it is also relevant if you are intending to remortgage your Looe home.

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

The conveyancing solicitors 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 conveyancer we work with provide it.

Looe Lease Extension Case Studies:

Sebastian, Looe, Cornwall

Two years ago Sebastian, came precariously close to the 80-year mark with the lease on his one bedroom flat in Looe. Having purchased his home two decades ago, the lease term was of no concern. Thankfully, he realised he needed to take action soon on a lease extension. Sebastian extended the lease just ahead of time in January. Sebastian and the freeholder via the managing agents eventually agreed on an amount of £5,500 . If the lease had slipped lower than eighty years, the figure would have become more exhorbitant by at least £1,025.

Looe case:

In 2013 we were approached by Mr John Taylor who, having bought a one bedroom apartment in Looe in August 2003. We are asked if we could estimate the price could be for a 90 year extension to my lease. Similar properties in Looe with an extended lease were valued about £265,200. The average amount of ground rent was £65 collected monthly. The lease termination date was on 21 August 2092. Having 66 years left we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of costs.

Looe case:

Dr O Lee moved into a studio apartment in Looe in October 2007. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Identical flats in Looe with 100 year plus lease were in the region of £198,800. The average ground rent payable was £55 billed quarterly. The lease concluded in 2081. Having 55 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of expenses.