Why you should commence your Lynmouth lease extension

Why you should commence your Lynmouth lease extension today:

Increase your lease and increase your Lynmouth property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Lynmouth. Clearly, the term of lease left reduces as time goes by. This is often ignored and only becomes a problem when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Lynmouth have the right to extend the lease for an additional ninety years in accordance with statute. Do give careful consideration before delaying your Lynmouth lease extension. Putting off the cost now likely increases the price you will eventually have to pay for a lease extension

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

Leasehold premises in Lynmouth with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.

Mortgage lenders may decide not to finance a property on a short lease

Banks and building societies do not grant a mortgage on short residential leases. You most probably experience difficulties if you want to sell your flat in Lynmouth if the unexpired term of your lease is under the criteria set by the majority of banks and building societies. Different lenders have varying requirements but on the whole they are looking for a minimum remaining lease term of seventy years.

Why use us for your lease extension in Lynmouth?

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

Lynmouth Lease Extension Example Cases:

Ben, Lynmouth, Devon,

Ben was the the leasehold proprietor of a studio flat in Lynmouth being sold with a lease of just over 61 years left. Ben informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be due on a lease extension were Ben to invoke his statutory right. Ben obtained expert advice and secured an acceptable deal informally and readily saleable.

Lynmouth case:

Last year we were e-mailed by Dr O Baker , who acquired a basement apartment in Lynmouth in February 1995. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Lynmouth with an extended lease were worth £220,400. The average amount of ground rent was £45 billed every twelve months. The lease expired in 2090. Given that there were 64 years left we calculated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including legals.

Lynmouth case:

Ms J Gray completed a one bedroom flat in Lynmouth in June 1995. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical properties in Lynmouth with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed yearly. The lease terminated in 2101. Given that there were 75 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.