Paignton 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 the lease becomes more expensive. Most owners of residential leasehold property in Paignton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Paignton you really ought to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Virgin |
Lease extensions in Paignton can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer 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 procuring Paignton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Charlie owned a 2 bedroom flat in Paignton on the market with a lease of a few days over 72 years remaining. Charlie informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Charlie to invoke his statutory right. Charlie obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2009 we were phoned by Dr Ollie Dupont who, having purchased a first floor apartment in Paignton in October 2001. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative properties in Paignton with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 billed per annum. The lease elapsed in 2096. Considering the 70 years outstanding we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
In 2011 we were called by Mr and Mrs. W González who, having acquired a basement apartment in Paignton in June 2012. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Comparable homes in Paignton with a long lease were in the region of £223,400. The average ground rent payable was £60 invoiced quarterly. The lease concluded on 11 February 2085. Taking into account 59 years left we calculated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 not including professional charges.