Top reasons for Devizes lease extension

Main reasons to start your Devizes lease extension today:

A Devizes lease depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Devizes is impacted by how many years the lease has remaining. If it is close to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that formalities can be concluded in advance of the eighty year mark. Leasehold Reform legislation entitles Devizes qualifying lessees to an additional term of ninety years over and above the remaining term, at a nominal rent (zero ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

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

Leasehold premises in Devizes with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies may not issue a mortgage on a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to become concerned at around 75 years. This may cause difficulties as and when you come to dispose of or remortgage your property as it will be practically unmortgageable. You might have no imminent plan to sell but when you do your buyer must hold off for 2 years before being able to initiate the legal procedures for an extension to the lease.

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

Regardless of whether you are a tenant or a freeholder in Devizes,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 Devizes valuers.

Devizes Lease Extension Case Summaries:

Freddie, Devizes, Wiltshire

Last year Freddie, started to get near to the 80-year threshold with the lease on his studio apartment in Devizes. Having purchased his home two decades ago, the unexpired term was of no bearing. Luckily, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Freddie was able to extend his lease at the eleventh hour last July. Freddie and the landlord subsequently settled on sum of £6,000 . If he had missed the deadline, the premium would have become more costly by a minimum £950.

Devizes case:

Mr and Mrs. R Johnson took over the lease of a studio flat in Devizes in September 2006. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Devizes with 100 year plus lease were worth £246,800. The average ground rent payable was £60 collected annually. The lease expired on 16 October 2076. Given that there were 50 years left we estimated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 plus fees.

Devizes case:

Last February we were contacted by Dr E Ward , who moved into a ground floor apartment in Devizes in April 2010. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar flats in Devizes with a long lease were valued about £203,200. The average ground rent payable was £65 billed per annum. The lease concluded in 2087. Having 61 years left we calculated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 plus legals.