Main reasons to start your Ivybridge lease extension

Main reasons to commence your Ivybridge lease extension today:

Increase your lease and increase your Ivybridge property value

As the the remaining lease term of a Ivybridge domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, more than 125 years to run then this decrease may be fractional however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner as opposed to later. Many flat owners in Ivybridge will meet the qualifying criteria; however a lawyer should be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Ivybridge with more than 100 years unexpired on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and maintenance charges merit it.

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

Mortgage lenders have specific criteria when loaning funds secured on leasehold homes. Some will simply not lend at all once the residual lease term goes beneath a specified unexpired lease term. Many Mortgage lenders will not regard property with a remaining below seventy years suitable security. In addition to impacting your ability to sell, it is also relevant if you are intending to refinance your Ivybridge home.

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

Regardless of whether you are a tenant or a freeholder in Ivybridge,the lease extension lawyers 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 Ivybridge valuers.

Ivybridge Lease Extension Case Summaries:

Bethany, Ivybridge, Devon,

In the wake of eight months of protracted correspondence with the freeholder of her first floor flat in Ivybridge, Bethany started the lease extension process as the 80 year mark was swiftly coming. The lease extension was concluded in January 2006. The freeholder’s costs were restricted to slightly above 550 GBP.

Ivybridge case:

Last Summer we were approach by Mr Owen Young , who took over the lease of a basement apartment in Ivybridge in March 1995. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Identical homes in Ivybridge with an extended lease were worth £252,800. The mid-range amount of ground rent was £65 collected annually. The lease lapsed on 4 March 2091. Considering the 65 years outstanding we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 not including expenses.

Ivybridge case:

In 2009 we were phoned by Mr M Lewis who, having owned a one bedroom flat in Ivybridge in April 1996. The dilemma was if we could estimate the premium would likely be to prolong the lease by 90 years. Similar flats in Ivybridge with an extended lease were in the region of £191,400. The mid-range amount of ground rent was £55 billed per annum. The lease terminated in 2080. Given that there were 54 years remaining we calculated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 exclusive of legals.