Main reasons to start your Redruth lease extension

Top reasons for lease extension now:

Increase your lease and increase your Redruth property value

Unfortunately that a Redruth residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Redruth property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be due. Most flat owners in Redruth will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.

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

Leasehold premises in Redruth with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.

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

The propensity since 2008 has been for banks to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by banks has increased. In the past mortgage companies would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in Redruth lease extensions?

Regardless of whether you are a tenant or a landlord in Redruth,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Redruth valuers.

Redruth Lease Extension Example Cases:

Luca, Redruth, Cornwall,

Luca was the the leasehold owner of a 2 bedroom flat in Redruth on the market with a lease of a little over 61 years remaining. Luca informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Luca to invoke his statutory right. Luca procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.

Redruth case:

Last Autumn we were called by Mrs Rosie Parker , who moved into a purpose-built flat in Redruth in August 1999. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar homes in Redruth with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 invoiced every twelve months. The lease ended in 2105. Considering the 79 years unexpired we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.

Redruth case:

In 2013 we were approached by Mr and Mrs. I Allen who, having acquired a studio apartment in Redruth in June 1996. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Identical flats in Redruth with an extended lease were worth £275,000. The average ground rent payable was £65 collected yearly. The lease elapsed on 3 April 2094. Taking into account 68 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.