Top reasons for North Plymouth lease extension

Top reasons for lease extension now:

A North Plymouth leasehold property depreciates with the years remaining on the lease.

North Plymouth leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most North Plymouth tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in North Plymouth you would be well advised to investigate if your lease has between 70 and ninety years left. There are good reasons why a North Plymouth leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.

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

Most banks have constrained their lending criteria in the last ten years and borrowers are encountering difficulties in arranging funding or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are considered to be unacceptable for lending purposes.

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

The conveyancing solicitors that we work with handle North Plymouth 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 conveyancing solicitor we work with provide it.

North Plymouth Lease Extension Case Summaries:

Aaron, North Plymouth, Devon,

Aaron owned a conversion apartment in North Plymouth on the market with a lease of a little over 59 years outstanding. Aaron on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Aaron to invoke his statutory right. Aaron obtained expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.

North Plymouth case:

Mr K Collins purchased a ground floor flat in North Plymouth in April 2010. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar homes in North Plymouth with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £45 billed annually. The lease came to a finish on 7 October 2096. Taking into account 70 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.

North Plymouth case:

In 2011 we were e-mailed by Mr Riley Robinson who, having took over the lease of a first floor apartment in North Plymouth in November 1996. We are asked if we could approximate the price could be to prolong the lease by 90 years. Similar premises in North Plymouth with an extended lease were in the region of £223,400. The mid-range ground rent payable was £60 billed every twelve months. The lease elapsed in 2085. Given that there were 59 years unexpired we calculated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 plus expenses.