Main reasons to start your Buckfastleigh and Dean lease extension

Main reasons to commence your Buckfastleigh and Dean lease extension today:

A Buckfastleigh and Dean lease depreciates with the years remaining on the lease.

For anyone whose Buckfastleigh and Dean property is held on a long lease, the message is clear – if you do nothing, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.

Buckfastleigh and Dean property with a lease extension is almost the same value as a freehold

Leasehold premises in Buckfastleigh and Dean with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.

Lenders will not loan monies on a short lease

The definition of a short lease varies by mortgage company, yet mortgage lenders start to get jittery at around 75 years. This may be problematic when you need to market or refinance your property as it will be practically unmortgageable. You may not have an immediate desire to sell but when you do your buyer will have to wait a couple of years before being able to exercise the right to a a lease extension.

What makes us experts in Buckfastleigh and Dean lease extensions?

Irrespective of whether you are a tenant or a landlord in Buckfastleigh and Dean,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 Buckfastleigh and Dean valuers.

Buckfastleigh and Dean Lease Extension Case Summaries:

Austin, Buckfastleigh and Dean, Devon,

Austin owned a studio flat in Buckfastleigh and Dean on the market with a lease of a few days over 61 years remaining. Austin on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Austin to invoke his statutory right. Austin obtained expert advice and secured an acceptable resolution informally and readily saleable.

Buckfastleigh and Dean case:

Last month we were e-mailed by Mr John Alexander , who completed a recently refurbished flat in Buckfastleigh and Dean in April 1996. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Buckfastleigh and Dean with a long lease were in the region of £198,800. The average ground rent payable was £55 collected yearly. The lease finished in 2081. Having 55 years left we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of costs.

Buckfastleigh and Dean case:

In 2011 we were contacted by Dr Y Young who, having completed a purpose-built flat in Buckfastleigh and Dean in November 2000. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Buckfastleigh and Dean with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 collected per annum. The lease ran out in 2102. Having 76 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.