Top reasons for South Brent lease extension

Main reasons to start your South Brent lease extension today:

A South Brent lease depreciates with the years remaining on the lease.

When it comes to residential leasehold premises in South Brent, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Leasehold owners in South Brent with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has under eighty years outstanding, under the current legislation the freeholder is entitled to calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.

South Brent property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Lenders may decide not to finance a property on a short lease

The propensity since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in South Brent lease extensions?

Lease extensions in South Brent can be a difficult process. We recommend you get guidance from a lawyer 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 in-depth market knowledge dealing with South Brent lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

South Brent Lease Extension Example Cases:

Aiden, South Brent, Devon,

Aiden owned a conversion apartment in South Brent on the market with a lease of a few days over 59 years outstanding. Aiden on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aiden to exercise his statutory right. Aiden procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.

South Brent case:

In 2013 we were approached by Dr John Clark who, having took over the lease of a first floor apartment in South Brent in April 2005. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Similar flats in South Brent with a long lease were in the region of £200,800. The mid-range ground rent payable was £65 invoiced per annum. The lease terminated on 13 March 2086. Having 60 years outstanding we approximated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 exclusive of fees.

South Brent case:

Mr R Morel purchased a one bedroom flat in South Brent in July 1999. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar premises in South Brent with an extended lease were valued about £255,000. The mid-range amount of ground rent was £50 billed per annum. The lease lapsed in 2097. Given that there were 71 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.