Why you should start your St Austell lease extension

Why you should start your St Austell lease extension today:

A St Austell lease depreciates with the years remaining on the lease.

St Austell 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 your lease gets more expensive. It is the case that most St Austell tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in St Austell you must check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold premises in St Austell with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lenders will not issue a mortgage with a short lease

The trend since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the unexpired lease term required by banks has increased. Historically lenders were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in St Austell lease extensions?

Retaining our service gives you better control over the value of your St Austell leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

St Austell Lease Extension Case Summaries:

Phoebe, St Austell, Cornwall,

Off the back of protracted negotiations with the landlord of her first floor flat in St Austell, Phoebe initiated the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The transaction was finalised in June 2010. The freeholder’s costs were negotiated to a tad over 500 GBP.

St Austell case:

Last Spring we were phoned by Ms Niamh Bonnet , who owned a first floor apartment in St Austell in May 2008. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparative premises in St Austell with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 invoiced every twelve months. The lease concluded on 21 September 2101. Considering the 75 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.

St Austell case:

Last Summer we were contacted by Mr Benjamin Cook , who owned a purpose-built apartment in St Austell in January 1999. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative flats in St Austell with an extended lease were valued about £168,800. The mid-range amount of ground rent was £60 collected per annum. The lease expired in 2081. Taking into account 55 years unexpired we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of fees.