Padstow Lease Extension - Free Consultation

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Main reasons to commence your Padstow lease extension


Main reasons to start your Padstow lease extension today:

Increase your lease and increase your Padstow property value

The re-sale value of a leasehold property in Padstow is impacted by how long the lease has left to run. If it is close to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that a lease extension can be finalised prior to the 80 year cut off point. Statute entitles Padstow qualifying lessees to acquire a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

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

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lenders will not lend on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become concerned at around 75 years. This may be problematic as and when you come to market or refinance your property as it will be practically unmortgageable. Even though you might not have an imminent intention to sell but when you do your buyer will need to hold off for a couple of years before they can start the legal procedures for a lease extension.

Lender Requirement
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Godiva Mortgages A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Royal Bank of Scotland Mortgage term plus 30 years.

Why use us for your lease extension in Padstow?

Regardless of whether you are a tenant or a landlord in Padstow,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Padstow valuers.

Padstow Lease Extension Case Summaries:

Noah, Padstow, Cornwall

During the course of the last few months Noah, came seriously near to the eighty-year threshold with the lease on his leasehold flat in Padstow. Having bought his flat two decades ago, the unexpired term was of minimal relevance. Luckily, he became aware that he would soon be paying an escalated premium for Extending the lease. Noah was able to extend his lease just under the wire last June. Noah and the freeholder subsequently agreed on an amount of £6,000 . If he had missed the deadline, the amount would have escalated by at least £1,125.

Padstow case:

Dr P Hall took over the lease of a ground floor flat in Padstow in June 2005. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative flats in Padstow with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 collected yearly. The lease concluded in 2098. Having 73 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.

Padstow case:

Last Spring we were contacted by Ms Mia Morris , who owned a ground floor flat in Padstow in October 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical properties in Padstow with an extended lease were in the region of £240,600. The average ground rent payable was £60 collected quarterly. The lease elapsed on 23 November 2087. Taking into account 62 years outstanding we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including expenses.