Main reasons to start your Camelford lease extension

Main reasons to commence your Camelford lease extension today:

A Camelford leasehold property depreciates with the years remaining on the lease.

When it comes to residential leasehold property in Camelford, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years left. Anyone in Camelford with a lease drawing near to 81 years remaining should seriously think of extending it sooner than later. When a lease has under 80 years outstanding, under the relevant statute the freeholder can calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.

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

Leasehold properties in Camelford with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies may decide not to loan monies with a short lease

The trend since 2008 has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the home loan is to be charged. This has resulted in the unexpired lease term required by lenders has increased. In the past lenders would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Camelford?

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

Camelford Lease Extension Case Studies:

Michael, Camelford, Cornwall,

Michael was the the leasehold proprietor of a conversion apartment in Camelford on the market with a lease of fraction over 59 years outstanding. Michael informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Michael to exercise his statutory right. Michael procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.

Camelford case:

Mr and Mrs. V Edwards completed a studio flat in Camelford in May 2010. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Similar properties in Camelford with a long lease were worth £174,200. The average amount of ground rent was £55 collected yearly. The lease lapsed on 1 October 2077. Having 51 years left we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of legals.

Camelford case:

Mr V Moore owned a studio flat in Camelford in November 1997. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar premises in Camelford with a long lease were worth £285,000. The mid-range amount of ground rent was £45 collected quarterly. The lease expired on 7 August 2097. Considering the 71 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.