Main reasons to start your Paignton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Paignton property value

The value of Paignton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the remaining term is less than eighty years

An extended lease is almost the same value as a freehold

Leasehold residencies in Paignton with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Lending institutions may decide not to grant a mortgage with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet banks and building societies start to get jittery at around 75 years. This may be problematic when you need to sell or remortgage your property as it will be practically unmortgageable. You may not have an immediate desire to sell but when you do your purchaser will have to wait two years before being able to initiate the legal procedures for a lease extension.

What makes us experts in Paignton lease extensions?

Using our service will provide you enhanced control over the value of your Paignton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Paignton Lease Extension Case Summaries:

Alexander, Paignton, Devon,

Alexander owned a conversion flat in Paignton being marketed with a lease of fraction over 61 years remaining. Alexander on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Alexander to exercise his statutory right. Alexander procured expert advice and secured satisfactory resolution without going to tribunal and sell the flat.

Paignton case:

In 2009 we were phoned by Mrs J Robinson who, having owned a purpose-built apartment in Paignton in October 2010. We are asked if we could estimate the price would be to extend the lease by 90 years. Similar premises in Paignton with a long lease were valued around £216,000. The mid-range amount of ground rent was £60 collected monthly. The lease came to a finish on 26 May 2084. Taking into account 58 years left we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including expenses.

Paignton case:

Last April we were called by Mr and Mrs. C Evans , who moved into a purpose-built apartment in Paignton in June 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar premises in Paignton with a long lease were worth £200,000. The average amount of ground rent was £50 collected annually. The lease termination date was on 27 October 2104. Taking into account 78 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.