Why you should commence your Kingsbridge lease extension

Top reasons for lease extension now:

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

The market value of a leasehold property in Kingsbridge is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is ideal to start the lease extension process when a lease still has 82 years to run so that formalities can be finalised in advance of the 80 year mark. Statute enables Kingsbridge qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

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

It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may not lend on a short lease

Most mortgage lenders have tightened lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly below 75 years as they are considered to be unacceptable security.

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

Lease extensions in Kingsbridge can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor 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 dealing with Kingsbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Kingsbridge Lease Extension Example Cases:

Holly, Kingsbridge, Devon,

Trailing unsuccessful discussions with the landlord of her basement flat in Kingsbridge, Holly started the lease extension process just as the lease was nearing the all-important 80-year mark. The legal work was concluded in September 2012. The landlord’s fees were kept to an absolute minimum.

Kingsbridge case:

In 2010 we were e-mailed by Mr W Bennett who, having was assigned a lease of a one bedroom flat in Kingsbridge in May 1998. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Similar premises in Kingsbridge with an extended lease were valued about £216,000. The average amount of ground rent was £60 collected monthly. The lease ran out on 11 November 2084. Considering the 58 years outstanding we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including expenses.

Kingsbridge case:

Mr I Leroy was assigned a lease of a studio flat in Kingsbridge in July 2003. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Comparative properties in Kingsbridge with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 invoiced yearly. The lease ended on 15 April 2104. Taking into account 78 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.