Main reasons to start your Brixham lease extension

Top reasons for lease extension now:

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

The market value of a leasehold property in Brixham is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised prior to the eighty year cut off point. Current legislation enables Brixham qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.

Lending institutions may not lend on a short lease

The trend since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past banks would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Brixham lease extensions?

Regardless of whether you are a tenant or a landlord in Brixham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brixham valuers.

Brixham Lease Extension Case Summaries:

Freya, Brixham, Devon,

Off the back of lengthy discussions with the landlord of her garden flat in Brixham, Freya initiated the lease extension process just as her lease was nearing the all-important 80-year mark. The legal work completed in July 2014. The freeholder’s fees were negotiated to slightly above 450 GBP.

Brixham case:

Ms Leah Carter acquired a first floor flat in Brixham in September 2010. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Similar properties in Brixham with 100 year plus lease were in the region of £245,000. The average ground rent payable was £50 invoiced quarterly. The lease came to a finish on 21 April 2094. Considering the 68 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.

Brixham case:

Mr and Mrs. G Jackson bought a ground floor apartment in Brixham in February 2010. We are asked if we could estimate the price could be for a 90 year lease extension. Identical flats in Brixham with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated in 2105. Having 79 years remaining we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including expenses.