Why you should commence your Kingsbridge lease extension

Why you should commence your Kingsbridge lease extension today:

A Kingsbridge leasehold property depreciates with the years remaining on the lease.

Kingsbridge leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Kingsbridge residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Kingsbridge you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

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

It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions may decide not to loan monies on a short lease

Banks and building societies will not grant a mortgage on short residential leases. You most probably encounter problems if you want to sell your flat in Kingsbridge if the remaining term of your lease is under the criteria set by the majority of lenders. Different mortgage companies have different criteria but generally they are looking for a minimum remaining lease term of seventy years.

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

The conveyancers that we work with procure Kingsbridge 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.

Kingsbridge Lease Extension Example Cases:

Harry, Kingsbridge, Devon,

Harry was the the leasehold proprietor of a 2 bedroom apartment in Kingsbridge being marketed with a lease of a little over 59 years outstanding. Harry on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harry to exercise his statutory right. Harry obtained expert advice and secured an acceptable deal informally and sell the property.

Kingsbridge case:

In 2010 we were called by Dr Eliot Bertrand who, having owned a purpose-built flat in Kingsbridge in April 2008. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative premises in Kingsbridge with a long lease were valued about £191,400. The mid-range ground rent payable was £55 billed yearly. The lease came to a finish on 26 May 2080. Having 54 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 plus professional charges.

Kingsbridge case:

Mr and Mrs. B Mason completed a recently refurbished apartment in Kingsbridge in January 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Kingsbridge with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease expiry date was on 12 November 2100. Having 74 years left we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.