Top reasons for Salcombe lease extension

Top reasons for lease extension now:

Increase your lease and increase your Salcombe property value

Salcombe leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Salcombe tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Salcombe you should check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Lending institutions may decide not to finance a property on a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to become concerned at around 75 years. This will cause difficulties once you come to sell or refinance your flat as it will be effectively unmortgageable. You may not have an immediate intention to sell but when you do your buyer will have to hold off for 2 years before they can commence the legal procedures for an extension to the lease.

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

Irrespective of whether you are a tenant or a freeholder in Salcombe,the lease extension experts 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 Salcombe valuers.

Salcombe Lease Extension Example Cases:

Hugo, Salcombe, Devon,

Hugo owned a 2 bedroom flat in Salcombe on the market with a lease of a few days over fifty eight years left. Hugo on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.

Salcombe case:

In 2012 we were e-mailed by Mr E Clark who, having purchased a purpose-built flat in Salcombe in June 2008. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable homes in Salcombe with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 billed every twelve months. The lease ran out in 2082. Given that there were 56 years remaining we calculated the premium to the landlord to extend the lease to be between £29,500 and £34,000 plus legals.

Salcombe case:

Last Winter we were approach by Mr and Mrs. I Mason , who purchased a purpose-built apartment in Salcombe in June 1995. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative homes in Salcombe with a long lease were in the region of £242,600. The average ground rent payable was £45 invoiced quarterly. The lease lapsed on 10 August 2093. Having 67 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 plus expenses.