Why you should start your Saltash lease extension

Why you should start your Saltash lease extension today:

A Saltash leasehold property depreciates with the years remaining on the lease.

Saltash residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.

An extended lease is almost the same value as a freehold

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

Lending institutions may not issue a mortgage with a short lease

Mortgage companies are really clamping down as regards to properties in Saltash with short leases. For example you might discover that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so where you needed to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus reducing your market.

What makes us experts in Saltash lease extensions?

The conveyancing solicitors that we work with handle Saltash 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 lawyer we work with provide it.

Saltash Lease Extension Example Cases:

Cameron, Saltash, Cornwall

Half a year ago Cameron, started to get close to the 80-year threshold with the lease on his garden apartment in Saltash. In buying his flat 18 years ago, the length of the lease was of little importance. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Cameron arranged for a lease extension at the eleventh hour in January. Cameron and the freeholder via the management company subsequently settled on sum of £5,500 . If the lease had fallen lower than eighty years, the premium would have increased by at least £1,025.

Saltash case:

Last July we were contacted by Mr and Mrs. A Sánchez , who acquired a studio flat in Saltash in September 1999. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar properties in Saltash with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 invoiced monthly. The lease expired on 17 November 2097. Considering the 71 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.

Saltash case:

Last Summer we were contacted by Dr Ryan Green , who owned a one bedroom apartment in Saltash in August 1996. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Similar homes in Saltash with an extended lease were in the region of £225,800. The average ground rent payable was £60 invoiced quarterly. The lease expiry date was on 24 February 2086. Considering the 60 years left we approximated the premium to the landlord to extend the lease to be within £23,800 and £27,400 plus costs.