Main reasons to commence your Colyton lease extension

Why you should commence your Colyton lease extension today:

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

Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Colyton. Clearly, the period of lease left reduces as time goes by. This may pass by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Colyton have the right to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Please give careful deliberation before putting off your Colyton lease extension. Putting off that expense now likely increases the price you will eventually have to pay to extend your lease

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Lenders may not loan monies with a short lease

Most mortgage lenders have tightened lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are regarded as unacceptable for lending purposes.

Why use us for your lease extension in Colyton?

Using our service gives you increased control over the value of your Colyton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Colyton Lease Extension Case Studies:

Luke, Colyton, Devon,

Luke owned a conversion apartment in Colyton on the market with a lease of just over 61 years remaining. Luke on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Luke to exercise his statutory right. Luke procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.

Colyton case:

Last Spring we were approach by Ms Sian Bonnet , who owned a garden flat in Colyton in July 1998. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable homes in Colyton with an extended lease were worth £200,000. The average ground rent payable was £50 billed annually. The lease ended on 19 February 2103. Taking into account 77 years left we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.

Colyton case:

Last Summer we were called by Mr and Mrs. R Walker , who bought a garden flat in Colyton in April 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Colyton with a long lease were worth £265,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease end date was on 14 February 2092. Given that there were 66 years unexpired we calculated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of legals.