Main reasons to start your Paignton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Paignton property value

The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Paignton may extend the lease for an additional 90 years under legislation. Please give careful consideration before delaying your Paignton lease extension. Postponing that expense now simply increases the amount you will ultimately be required to pay to extend the lease.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years ahead.

Lenders may decide not to lend on a short lease

Mortgage companies are really restricting their approach as regards to properties in Paignton with short leases. For instance you may find that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus restricting your market.

Why use us for your lease extension in Paignton?

The lawyers that we work with procure Paignton 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 conveyancer we work with provide it.

Paignton Lease Extension Case Studies:

Oscar, Paignton, Devon

During the course of the last few months Oscar, came dangerously close to the 80-year threshold with the lease on his leasehold apartment in Paignton. Having bought his home two decades ago, the lease term was of no concern. by good luck, he recognised he would imminently be paying an escalated premium for Extending the lease. Oscar was able to extend his lease just under the wire in August. Oscar and the freeholder in the end settled on a premium of £5,000 . If he not met the deadline, the price would have become more exhorbitant by a minimum £875.

Paignton case:

Last November we were approach by Dr James David , who was assigned a lease of a garden flat in Paignton in October 2009. We are asked if we could estimate the price could be to extend the lease by 90 years. Identical homes in Paignton with 100 year plus lease were valued around £191,400. The average amount of ground rent was £55 collected monthly. The lease ended on 3 April 2080. Considering the 54 years unexpired we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 plus costs.

Paignton case:

Last Spring we were phoned by Mr and Mrs. K Simon , who acquired a basement flat in Paignton in October 2009. The question was if we could estimate the premium would likely be to extend the lease by 90 years. Comparable flats in Paignton with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced yearly. The lease concluded in 2100. Having 74 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.