Top reasons for Newton Abbot lease extension

Main reasons to commence your Newton Abbot lease extension today:

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

The market value of a leasehold property in Newton Abbot is impacted by how long the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that formalities can be addressed ahead of the eighty year cut off point. Current legislation entitles Newton Abbot qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty 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 purchase of the lease extension.

Newton Abbot property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.

Mortgage lenders may decide not to loan monies with a short lease

The propensity since over the last decade has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Newton Abbot lease extensions?

Lease extensions in Newton Abbot can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Newton Abbot lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Newton Abbot Lease Extension Example Cases:

Shannon, Newton Abbot, Devon,

Subsequent to lengthy discussions with the landlord of her ground floor flat in Newton Abbot, Shannon started the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The lease extension completed in August 2012. The landlord’s charges were restricted to slightly above 500 pounds.

Newton Abbot case:

Mr Jamie Hall completed a studio flat in Newton Abbot in March 2011. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar properties in Newton Abbot with an extended lease were in the region of £270,000. The average ground rent payable was £55 invoiced every twelve months. The lease lapsed on 19 July 2101. Given that there were 75 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.

Newton Abbot case:

Last Spring we were contacted by Ms Georgina Davies , who moved into a one bedroom apartment in Newton Abbot in February 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Newton Abbot with 100 year plus lease were in the region of £173,800. The average ground rent payable was £60 collected every twelve months. The lease ended in 2081. Considering the 55 years outstanding we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus legals.