Top reasons for Newton Abbot lease extension

Why you should commence your Newton Abbot lease extension today:

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

Newton Abbot 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 your lease gets more expensive. The majority of owners of residential leasehold property in Newton Abbot enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Newton Abbot you must check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Newton Abbot flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions will not grant a mortgage with a short lease

Lending institutions have set criteria when loaning funds secured on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term drops under a specified unexpired lease term. Many Lending institutions will not regard property with a remaining below seventy years as adequate security. As well as impacting your ability to sell, it is also relevant where you are seeking to refinance your Newton Abbot property.

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

Regardless of whether you are a tenant or a freeholder in Newton Abbot,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 experience and the close ties they enjoy with Newton Abbot valuers.

Newton Abbot Lease Extension Example Cases:

Holly, Newton Abbot, Devon,

Following unsuccessful discussions with the freeholder of her purpose-built apartment in Newton Abbot, Holly commenced the lease extension process just as the lease was approaching the all-important eighty-year threshold. The legal work was concluded in April 2015. The landlord’s charges were restricted to under 450 GBP.

Newton Abbot case:

Last March we were called by Mr and Mrs. N James , who took over the lease of a garden flat in Newton Abbot in June 1997. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Comparable residencies in Newton Abbot with a long lease were valued around £260,000. The average amount of ground rent was £50 invoiced quarterly. The lease finished on 21 July 2097. Given that there were 71 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.

Newton Abbot case:

Ms Grace Smith completed a ground floor flat in Newton Abbot in April 2008. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable homes in Newton Abbot with a long lease were in the region of £254,200. The average amount of ground rent was £60 invoiced monthly. The lease ran out in 2077. Taking into account 51 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 plus legals.