Main reasons to start your Newton Abbot lease extension

Main reasons to commence your Newton Abbot lease extension today:

A Newton Abbot leasehold property depreciates with the years remaining on the lease.

The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Newton Abbot may extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your Newton Abbot lease extension. Postponing that expense today simply escalates the price you will eventually be required to pay to extend the lease.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Newton Abbot with over 100 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 situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may not lend on a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to get concerned at around 75 years. This will cause difficulties when you wish to sell or refinance your flat as it will be practically unmortgageable. Even though you may have no imminent desire to sell but when you do your buyer will need to hold off for two years before they can exercise the right to a a lease extension.

What makes us experts in Newton Abbot lease extensions?

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

Newton Abbot Lease Extension Case Summaries:

Jake, Newton Abbot, Devon,

Jake was the the leasehold proprietor of a studio flat in Newton Abbot being sold with a lease of a little over sixty years unexpired. Jake informally contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jake to exercise his statutory right. Jake obtained expert advice and was able to make a more informed decision and deal with the matter and sell the flat.

Newton Abbot case:

Mrs Y Clark purchased a studio apartment in Newton Abbot in July 2010. The dilemma was if we could approximate the price would likely be to prolong the lease by 90 years. Comparable residencies in Newton Abbot with an extended lease were valued about £218,000. The average ground rent payable was £45 invoiced per annum. The lease expired on 15 September 2089. Considering the 63 years left we calculated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 plus costs.

Newton Abbot case:

In 2013 we were e-mailed by Mr and Mrs. B Bailey who, having owned a ground floor apartment in Newton Abbot in September 1998. We are asked if we could approximate the price could be to prolong the lease by an additional years. Identical residencies in Newton Abbot with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected yearly. The lease came to a finish in 2100. Taking into account 74 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.