Top reasons for Padstow lease extension

Main reasons to start your Padstow lease extension today:

Increase your lease and increase your Padstow 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 usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Padstow. Clearly, the length of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the property has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Padstow have the right to extend the lease for a further 90 years in accordance with statute. You should give careful attention before delaying your Padstow lease extension. Putting off the cost now likely increases the price you will eventually have to pay for a lease extension

Padstow property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Padstow with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.

Lenders may decide not to lend on a short lease

The trend since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the unexpired lease term required by lenders has increased. In the past mortgage companies were content with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Padstow lease extensions?

The conveyancing solicitors that we work with undertake Padstow 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.

Padstow Lease Extension Case Summaries:

Ali, Padstow, Cornwall

18 months ago Ali, came perilously close to the eighty-year mark with the lease on his one bedroom apartment in Padstow. In buying his home two decades ago, the unexpired term was of minimal interest. Thankfully, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Ali extended the lease just in the nick of time in January. Ali and the freeholder via the management company eventually settled on the final figure of £5,500 . If he had missed the deadline, the sum would have gone up by at least £925.

Padstow case:

Last May we were phoned by Mr Joseph Lewis , who owned a studio flat in Padstow in August 2007. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable flats in Padstow with an extended lease were valued around £208,600. The average amount of ground rent was £60 billed per annum. The lease terminated in 2083. Taking into account 57 years remaining we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus expenses.

Padstow case:

Ms V Watson moved into a one bedroom flat in Padstow in July 2000. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Identical premises in Padstow with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 billed yearly. The lease expired in 2103. Having 77 years remaining we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.