Why you should start your Okehampton lease extension

Why you should commence your Okehampton lease extension today:

Increase your lease and increase your Okehampton property value

As the the remaining lease term of a Okehampton residential lease decreases so does its value and therefore the value of your property. If the lease has, in excess of 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Okehampton will meet the qualifying criteria; nevertheless a lawyer will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

Okehampton property with a lease extension has roughly the same value as a freehold

Leasehold premises in Okehampton with more than one hundred years left 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies will not grant a mortgage with a short lease

The trend since the credit crunch has been for banks to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by lenders has increased. In the past mortgage companies would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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

The lawyers that we work with undertake Okehampton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Okehampton Lease Extension Case Studies:

Jordan, Okehampton, Devon,

Off the back of unsuccessful correspondence with the freeholder of her ground floor flat in Okehampton, Jordan commenced the lease extension process as the 80 year threshold was rapidly coming. The lease extension completed in October 2005. The freeholder’s costs were kept to an absolute minimum.

Okehampton case:

Last Winter we were phoned by Dr A King , who was assigned a lease of a one bedroom apartment in Okehampton in July 1998. We are asked if we could estimate the price would be for a 90 year lease extension. Comparative flats in Okehampton with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 billed yearly. The lease elapsed in 2092. Taking into account 66 years outstanding we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.

Okehampton case:

Last month we were e-mailed by Mr and Mrs. M Lee , who purchased a ground floor apartment in Okehampton in July 2003. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Identical homes in Okehampton with an extended lease were in the region of £280,000. The average amount of ground rent was £55 collected yearly. The lease termination date was in 2103. Considering the 77 years remaining we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including legals.