Why you should start your Saltash lease extension

Why you should start your Saltash lease extension today:

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

The value of Saltash leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the remaining term is below than 80 years

An extended lease is almost the same value as a freehold

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

Lenders may decide not to issue a mortgage on a short lease

The trend since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically lenders would lend on a lease with twenty years plus the term of the loan - routinely 50 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.

Why use us for your lease extension in Saltash?

Irrespective of whether you are a tenant or a freeholder in Saltash,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Saltash valuers.

Saltash Lease Extension Example Cases:

John, Saltash, Cornwall,

John was the the leasehold proprietor of a high value flat in Saltash on the market with a lease of fraction over 72 years unexpired. John informally approached his freeholder a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be due on a lease extension were John to invoke his statutory right. John obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.

Saltash case:

Last Spring we were phoned by Dr Leo Fournier , who owned a newly refurbished flat in Saltash in August 2004. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar flats in Saltash with 100 year plus lease were valued around £205,000. The average amount of ground rent was £50 invoiced yearly. The lease terminated on 11 November 2105. Taking into account 79 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.

Saltash case:

Ms Elizabeth Evans took over the lease of a ground floor apartment in Saltash in January 2006. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative flats in Saltash with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 collected yearly. The lease ended on 28 March 2094. Considering the 68 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.