Main reasons to start your Paignton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Paignton property value

Paignton residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may decide not to grant a mortgage on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. Historically banks 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 lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Paignton lease extensions?

Engaging our service will provide you increased control over the value of your Paignton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Paignton Lease Extension Example Cases:

Andrew, Paignton, Devon

In 2014 Andrew, came dangerously near to the 80-year mark with the lease on his basement apartment in Paignton. In buying his flat 19 years ago, the lease term was of no importance. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Andrew extended the lease at the eleventh hour last September. Andrew and the freeholder via the managing agents subsequently agreed on sum of £5,500 . If the lease had fallen lower than eighty years, the amount would have gone up by a minimum £1,025.

Paignton case:

In 2014 we were e-mailed by Mrs I Robinson who, having completed a studio flat in Paignton in August 2005. We are asked if we could estimate the price could be to extend the lease by ninety years. Similar flats in Paignton with an extended lease were in the region of £240,600. The mid-range amount of ground rent was £60 invoiced per annum. The lease terminated on 8 August 2088. Considering the 62 years remaining we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including costs.

Paignton case:

Dr T Morgan owned a ground floor apartment in Paignton in April 2002. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Comparable premises in Paignton with an extended lease were in the region of £174,200. The mid-range amount of ground rent was £55 invoiced per annum. The lease lapsed in 2077. Taking into account 51 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including expenses.