Why you should commence your Penzance lease extension

Why you should commence your Penzance lease extension today:

A Penzance lease depreciates with the years remaining on the lease.

The market value of Penzance leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the remaining term is below than eighty years

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

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Lending institutions may not grant a mortgage on a short lease

Many mortgage lenders insist on a lengthy amount of time remaining on any leasehold property before they will contemplate providing a mortgage on it. Regardless of whether you require a mortgage, you should keep in mind that it is probable that someone wanting to acquire your property in the future might well do, so if they can't get a mortgage, then the market price of the property will likely suffer. Since 2008 the majority of banks and building societies have increased the required minimum lease length that they are willing to accept

What makes us experts in Penzance lease extensions?

Engaging our service will provide you increased control over the value of your Penzance leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Penzance Lease Extension Case Summaries:

Benjamin, Penzance, Cornwall

Last October Benjamin, started to get close to the eighty-year threshold with the lease on his purpose- built flat in Penzance. In buying his flat two decades ago, the length of the lease was of minimal relevance. Fortunately, he noticed he needed to take steps soon on a lease extension. Benjamin arranged for a lease extension at the eleventh hour last July. Benjamin and the landlord subsequently agreed on a premium of £6,000 . If the lease had fallen below eighty years, the premium would have gone up by at least £1,100.

Penzance case:

Dr Chloe Bennett moved into a newly refurbished flat in Penzance in August 2004. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Similar premises in Penzance with a long lease were worth £200,800. The mid-range ground rent payable was £65 collected per annum. The lease finished in 2086. Having 60 years left we estimated the premium to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of costs.

Penzance case:

Dr Muhammad François purchased a one bedroom flat in Penzance in January 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Penzance with a long lease were valued around £260,000. The mid-range amount of ground rent was £50 billed annually. The lease concluded on 28 June 2097. Having 71 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.