Top reasons for Crediton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Crediton property value

For anyone whose Crediton home is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Crediton with over 100 years unexpired 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not loan monies on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Crediton lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with handle Crediton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Crediton Lease Extension Example Cases:

Isaac, Crediton, Devon

In 2014 Isaac, came perilously near to the eighty-year threshold with the lease on his one bedroom apartment in Crediton. In buying his property two decades ago, the lease term was of minimal interest. Luckily, he became aware that he needed to take steps soon on Extending the lease. Isaac was able to extend his lease just under the wire last August. Isaac and the landlord who owned the flat above subsequently settled on a premium of £6,000 . If he had missed the deadline, the premium would have increased by a minimum £1,025.

Crediton case:

Mr and Mrs. Y Phillips was assigned a lease of a purpose-built flat in Crediton in May 2010. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical residencies in Crediton with a long lease were in the region of £260,000. The average amount of ground rent was £50 invoiced annually. The lease concluded on 10 October 2098. Having 72 years left we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.

Crediton case:

Mr and Mrs. R Jackson owned a one bedroom flat in Crediton in June 2000. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Comparable properties in Crediton with an extended lease were worth £256,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease finished on 24 November 2078. Considering the 52 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 not including legals.