Why you should commence your 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 properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Looe enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Looe you must check if your lease has between seventy and 90 years remaining. There are good reasons why a Looe leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is actioned without delay

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.

Mortgage lenders will not lend on a short lease

Lenders are really clamping down as regards to properties in Looe with short leases. For example you may find that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so if you needed to sell, your only options would be to find a cash buyer, or try your luck at auction thus limiting the amount of potential purchasers.

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

Regardless of whether you are a tenant or a landlord in Looe,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Looe valuers.

Looe Lease Extension Case Summaries:

Ben, Looe, Cornwall,

Ben was the the leasehold proprietor of a high value apartment in Looe being marketed with a lease of just over sixty years unexpired. Ben informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ben to exercise his statutory right. Ben procured expert advice and secured an acceptable resolution informally and readily saleable.

Looe case:

Last year we were called by Mrs I Bonnet , who owned a first floor apartment in Looe in April 2007. We are asked if we could estimate the price could be to extend the lease by an additional years. Identical homes in Looe with an extended lease were in the region of £196,400. The mid-range amount of ground rent was £55 billed monthly. The lease ended in 2080. Considering the 54 years remaining we estimated the compensation to the landlord to extend the lease to be within £35,200 and £40,600 plus professional charges.

Looe case:

Mr and Mrs. T David purchased a garden apartment in Looe in September 2009. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar properties in Looe with 100 year plus lease were worth £295,000. The average ground rent payable was £45 billed per annum. The lease ran out on 28 January 2100. Taking into account 74 years remaining we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.