Stop! Your Lease Extension in South Molton Could Be FREE

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Many leaseholders in South Molton are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in South Molton has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to commence your South Molton lease extension

Why you should start your South Molton lease extension today:

Increase your lease and increase your South Molton property value

Chances are that where you own a flat in South Molton you actually own a long leasehold interest over your property

An extended lease has roughly the same value as a freehold

Leasehold properties in South Molton with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders will not issue a mortgage with a short lease

Nearly all banks and building societies insist on a lengthy amount of time remaining on a leasehold residence before they will contemplate it as adequate security. Even if you don't require a mortgage, you should be mindful that it is reasonable to assume that someone wanting to purchase your property in the future might well do, so if they are not able to get a mortgage, then the financial worth of your property will likely suffer. In the last decade most banks and building societies have increased the required minimum lease length that they are prepared to lend on

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Royal Bank of Scotland Mortgage term plus 30 years.
Yorkshire Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.

What makes us experts in South Molton lease extensions?

Regardless of whether you are a tenant or a freeholder in South Molton,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 South Molton valuers.

South Molton Lease Extension Example Cases:

Omar, South Molton, Devon

In 2014 Omar, started to get near to the 80-year threshold with the lease on his purpose- built flat in South Molton. In buying his property twenty years ago, the lease term was of little significance. Fortunately, he became aware that he needed to take action soon on a lease extension. Omar was able to extend his lease just under the wire in August. Omar and the landlord subsequently settled on sum of £5,000 . If he failed to meet the deadline, the figure would have become more costly by a minimum £900.

South Molton case:

Mrs D Rogers moved into a studio flat in South Molton in June 2008. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparable premises in South Molton with 100 year plus lease were worth £223,400. The average amount of ground rent was £60 invoiced every twelve months. The lease lapsed in 2085. Taking into account 59 years left we calculated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 not including expenses.

South Molton case:

Last March we were phoned by Mr and Mrs. T Lee , who took over the lease of a one bedroom apartment in South Molton in April 2001. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparative premises in South Molton with an extended lease were worth £205,000. The average amount of ground rent was £50 invoiced quarterly. The lease ran out on 25 June 2105. Taking into account 79 years left we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.