Paignton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Paignton tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Paignton you must see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Paignton flat owner with a lease having around eighty years left should take action to make sure that a lease extension is put in place without delay
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Paignton,the lease extension lawyers 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 Paignton valuers.
Twenty four months ago Freddie, came seriously near to the 80-year mark with the lease on his basement flat in Paignton. Having purchased his flat two decades ago, the length of the lease was of minimal bearing. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Freddie extended the lease just ahead of time in January. Freddie and the landlord eventually agreed on an amount of £6,000 . If the lease had dipped lower than eighty years, the premium would have increased by a minimum £900.
Dr U Cook moved into a garden apartment in Paignton in September 2010. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Paignton with an extended lease were in the region of £260,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease elapsed on 22 February 2092. Given that there were 66 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 plus professional charges.
In 2014 we were phoned by Mr Connor Ramírez who, having purchased a one bedroom flat in Paignton in January 2007. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar premises in Paignton with an extended lease were valued about £198,800. The average amount of ground rent was £55 collected monthly. The lease finished on 28 November 2081. Taking into account 55 years unexpired we approximated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including legals.