Top reasons for Lynmouth lease extension

Why you should commence your Lynmouth lease extension today:

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

Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Lynmouth. Inevitably, the period of lease left reduces as time goes by. This may pass by relatively unnoticed when the flat or house needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Lynmouth have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. You should give due attention before putting off your Lynmouth lease extension. Holding off that expense now likely increases the price you will ultimately incur to extend your lease

An extended lease is almost the same value as a freehold

Leasehold premises in Lynmouth with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.

Lenders may not loan monies on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. In the past mortgage companies were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

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

Retaining our service gives you increased control over the value of your Lynmouth leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Lynmouth Lease Extension Example Cases:

Tommy, Lynmouth, Devon,

Tommy owned a studio apartment in Lynmouth being sold with a lease of a little over 61 years remaining. Tommy on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Tommy to exercise his statutory right. Tommy procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.

Lynmouth case:

Last Autumn we were phoned by Mr and Mrs. U Adams , who acquired a one bedroom flat in Lynmouth in August 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Lynmouth with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 billed quarterly. The lease lapsed on 8 March 2105. Given that there were 79 years remaining we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.

Lynmouth case:

In 2010 we were contacted by Ms Naomi Cook who, having purchased a one bedroom apartment in Lynmouth in September 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Identical flats in Lynmouth with an extended lease were worth £193,400. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ran out in 2085. Given that there were 59 years left we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including fees.