Main reasons to start your Babbacombe lease extension

Main reasons to start your Babbacombe lease extension today:

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

Babbacombe leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Babbacombe residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Babbacombe you must see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

Babbacombe 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 100 years unexpired lease term 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 in the future.

Lenders may decide not to lend on a short lease

Almost all banks and building societies will be unwilling to lend on a lease with less than 70 years left to run - although this varies from lender to lender. A purchaser will no doubt encounter difficulties in obtaining a mortgage and this will result in your Babbacombe property being difficult to dispose of or to obtain finance on.

Get in touch with one of our Babbacombe lease extension solicitors or enfranchisement solicitors

Lease extensions in Babbacombe can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.

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 Babbacombe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Babbacombe Lease Extension Case Summaries:

Danielle, Babbacombe, Devon,

After lengthy negotiations with the landlord of her basement apartment in Babbacombe, Danielle started the lease extension process as the eighty year deadline was quickly coming. The lease extension was concluded in January 2010. The freeholder’s fees were negotiated to a tad over 500 GBP.

Babbacombe case:

In 2009 we were e-mailed by Dr I Kelly who, having owned a basement apartment in Babbacombe in August 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Babbacombe with an extended lease were valued about £232,800. The average amount of ground rent was £45 invoiced annually. The lease expired on 13 January 2091. Taking into account 65 years remaining we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.

Babbacombe case:

Last Winter we were contacted by Mr and Mrs. M Lefèvre , who owned a one bedroom flat in Babbacombe in November 2012. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Comparative residencies in Babbacombe with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 billed every twelve months. The lease terminated on 4 January 2102. Considering the 76 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.