Main reasons to start your Colyton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Colyton property value

Unfortunately that a Colyton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Colyton property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term dips below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Colyton will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.

Colyton property with a lease extension is almost the same value as a freehold

Leasehold properties in Colyton with more than 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 freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders may decide not to grant a mortgage with a short lease

Most mortgage lenders insist on a lengthy amount of time remaining on a leasehold property before they will contemplate it as adequate security. Regardless of whether you need a mortgage, you should be conscious that it is likely that someone wanting to purchase your property in the future might well do, so if they can't get a mortgage, then the value of the property could be adversely impacted. In the last decade many mortgage lenders have increased the required minimum lease length that they are willing to accept

Why use us for your lease extension in Colyton?

Regardless of whether you are a tenant or a landlord in Colyton,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 in-depth market knowledge and the close ties they enjoy with Colyton valuers.

Colyton Lease Extension Example Cases:

Sophia, Colyton, Devon,

Following unsuccessful correspondence with the freeholder of her first floor apartment in Colyton, Sophia initiated the lease extension process as the 80 year threshold was rapidly coming. The transaction was concluded in January 2007. The freeholder’s costs were negotiated to approximately 600 GBP.

Colyton case:

In 2014 we were e-mailed by Mr James Roux who, having acquired a basement flat in Colyton in April 2005. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable properties in Colyton with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected quarterly. The lease expiry date was in 2084. Considering the 58 years remaining we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.

Colyton case:

Dr Toby Torres took over the lease of a newly refurbished flat in Colyton in October 1996. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Colyton with 100 year plus lease were worth £205,000. The average ground rent payable was £50 invoiced quarterly. The lease expiry date was in 2104. Taking into account 78 years as a residual term we approximated the premium to the landlord to extend the lease to be within £7,600 and £8,800 exclusive of expenses.