Top reasons for Penzance lease extension

Why you should start your Penzance lease extension today:

Increase your lease and increase your Penzance property value

Penzance 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 gets more expensive. It is the case that most Penzance tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Penzance you really ought to investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Penzance leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay

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

Leasehold residencies in Penzance with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.

Mortgage lenders may decide not to finance a property with a short lease

Mortgage companies are tightening their criteria and many now require flats to have a minimum of 60 if not 70 years remaining once the mortgage has expired. Given that a number of flats in Penzance were built in the 1950s, 1960s and 1970s as a result many now need to be extended if they wish to obtain a mortgage.

What makes us experts in Penzance lease extensions?

Retaining our service gives you enhanced control over the value of your Penzance leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Penzance Lease Extension Case Summaries:

Abbie, Penzance, Cornwall,

In the wake of 6 months of lengthy discussions with the freeholder of her basement flat in Penzance, Abbie started the lease extension process as the eighty year mark was swiftly coming. The transaction was finalised in February 2009. The freeholder’s charges were kept to an absolute minimum.

Penzance case:

Mrs D Roberts acquired a ground floor flat in Penzance in May 2005. The question was if we could estimate the premium would be for a ninety year lease extension. Identical properties in Penzance with an extended lease were worth £260,000. The average ground rent payable was £50 billed annually. The lease terminated on 23 September 2098. Given that there were 72 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.

Penzance case:

Last Summer we were phoned by Dr Jacob Martínez , who moved into a first floor flat in Penzance in March 2006. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable residencies in Penzance with 100 year plus lease were in the region of £261,600. The mid-range ground rent payable was £60 invoiced annually. The lease expiry date was in 2078. Taking into account 52 years remaining we approximated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 plus expenses.