It’s an underpublicised certainty that a Cullompton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Cullompton property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be payable. Most flat owners in Cullompton will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Cullompton can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Cullompton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ethan owned a conversion flat in Cullompton being sold with a lease of a little over sixty years outstanding. Ethan informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Ethan to invoke his statutory right. Ethan obtained expert legal guidance and secured satisfactory deal informally and sell the property.
In 2011 we were contacted by Mr and Mrs. S Scott who, having owned a purpose-built apartment in Cullompton in October 2003. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Comparative flats in Cullompton with 100 year plus lease were valued about £265,000. The average ground rent payable was £50 collected quarterly. The lease ended in 2099. Having 73 years unexpired we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Last February we were e-mailed by Mr and Mrs. K Gómez , who bought a basement flat in Cullompton in May 1996. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Similar properties in Cullompton with 100 year plus lease were worth £264,000. The average ground rent payable was £60 billed yearly. The lease expired on 12 May 2079. Considering the 53 years unexpired we approximated the premium to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of costs.