Why you should start your Kingsbridge lease extension

Main reasons to commence your Kingsbridge lease extension today:

Increase your lease and increase your Kingsbridge property value

With a domestic leasehold property in Kingsbridge, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are less than eighty years remaining. Leasehold owners in Kingsbridge with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once the lease term has fewer than 80 years left, under the relevant statute the landlord is entitled to calculate and levy a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

Leasehold properties in Kingsbridge with in excess of 100 years left 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Lenders may decide not to finance a property on a short lease

Many mortgage companies insist on a lengthy amount of time remaining on a leasehold property before they will contemplate lending on it. Even if you don't need a mortgage, you should bear in mind that it is likely that someone intending to purchase your property in the future might well do, so in the event that they can't get a mortgage, then the value of your property could suffer. In the last decade the majority of banks and building societies have increased the required minimum lease length that they are willing to lend on

Why use us for your lease extension in Kingsbridge?

Irrespective of whether you are a tenant or a landlord in Kingsbridge,the lease extension solicitors 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 Kingsbridge valuers.

Kingsbridge Lease Extension Example Cases:

Sophie, Kingsbridge, Devon,

Subsequent to lengthy discussions with the freeholder of her one bedroom apartment in Kingsbridge, Sophie commenced the lease extension process just as her lease was nearing the critical eighty-year threshold. The legal work was finalised in November 2009. The landlord’s charges were kept to an absolute minimum.

Kingsbridge case:

Last year we were e-mailed by Mr and Mrs. W Lee , who acquired a one bedroom apartment in Kingsbridge in August 1996. The question was if we could approximate the price could be to prolong the lease by an additional years. Comparative properties in Kingsbridge with an extended lease were valued about £260,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease came to a finish on 7 February 2092. Taking into account 66 years outstanding we calculated the premium to the landlord for the lease extension to be between £14,300 and £16,400 plus legals.

Kingsbridge case:

Last Spring we were phoned by Mr Jude Watson , who purchased a basement flat in Kingsbridge in July 1996. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical homes in Kingsbridge with an extended lease were worth £198,800. The mid-range amount of ground rent was £55 collected per annum. The lease concluded on 22 November 2081. Considering the 55 years remaining we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 plus legals.