Top reasons for Lynmouth lease extension

Top reasons for lease extension now:

A Lynmouth leasehold property depreciates with the years remaining on the lease.

Lynmouth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Lynmouth tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Lynmouth you must see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold premises in Lynmouth with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.

Lenders will not loan monies on a short lease

Banks and building societies will not grant a mortgage on short residential leases. You are likely to experience problems if you wish to sell your flat in Lynmouth if the remaining lease term is below the criteria set by the majority of banks and building societies. Different lenders have varying requirements but on the whole theyrequire an unexpired term of at least seventy years.

Why use us for your lease extension in Lynmouth?

Using our service will provide you increased control over the value of your Lynmouth leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Lynmouth Lease Extension Example Cases:

Sam, Lynmouth, Devon

16 months ago Sam, came critically close to the 80-year mark with the lease on his basement flat in Lynmouth. Having bought his home two decades ago, the length of the lease was of little importance. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Sam was able to extend his lease at the eleventh hour in September. Sam and the landlord who owned the flat above eventually agreed on sum of £5,500 . If the lease had slid below eighty years, the price would have increased by at least £1,025.

Lynmouth case:

In 2013 we were called by Mr and Mrs. J Stewart who, having bought a one bedroom flat in Lynmouth in October 1999. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Identical properties in Lynmouth with a long lease were valued about £256,600. The average amount of ground rent was £60 collected quarterly. The lease finished in 2078. Taking into account 52 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £41,800 and £48,400 not including professional charges.

Lynmouth case:

In 2010 we were approached by Mr Finn Morgan who, having took over the lease of a studio flat in Lynmouth in May 1997. The question was if we could approximate the premium would be for a 90 year extension to my lease. Identical properties in Lynmouth with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ran out on 6 May 2089. Taking into account 63 years remaining we calculated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 plus legals.