Main reasons to commence your South Molton lease extension

Main reasons to start your South Molton lease extension today:

A South Molton lease depreciates with the years remaining on the lease.

As the the remaining lease term of a South Molton domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, beyond one hundred years remaining then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Many flat owners in South Molton will meet the qualifying criteria; that being said a conveyancer will be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

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

It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.

Banks and Building Societies will not lend with a short lease

The trend since 2008 has been for banks to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the unexpired lease term required by lenders has increased. In the past banks were content 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 South Molton?

Lease extensions in South Molton can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in lease extensions.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring South Molton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

South Molton Lease Extension Example Cases:

Jamie, South Molton, Devon

During the course of the last few months Jamie, started to get near to the 80-year threshold with the lease on his purpose- built flat in South Molton. Having purchased his property two decades ago, the unexpired term was of minimal significance. Thankfully, he noticed he needed to take steps soon on a lease extension. Jamie arranged for a lease extension just under the wire in January. Jamie and the freeholder ultimately agreed on sum of £5,000 . If the lease had slid below eighty years, the price would have escalated by a minimum £950.

South Molton case:

Last Summer we were e-mailed by Mr Mason Cox , who completed a one bedroom flat in South Molton in July 2001. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Comparable homes in South Molton with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 collected monthly. The lease terminated in 2090. Having 64 years unexpired we approximated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of expenses.

South Molton case:

Dr Louise Flores bought a purpose-built apartment in South Molton in July 1995. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar premises in South Molton with 100 year plus lease were in the region of £189,000. The average ground rent payable was £55 billed quarterly. The lease finished on 2 September 2079. Considering the 53 years outstanding we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of legals.