Why you should start your St Ives lease extension

Main reasons to start your St Ives lease extension today:

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

The value of St Ives leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the unexpired lease term is less than eighty years

An extended lease is almost the same value as a freehold

It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.

Banks and Building Societies may not grant a mortgage on a short lease

Banks and Building Societies have specific criteria when loaning funds secured on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term drops lower than a specified unexpired lease term. Many Lending institutions will not regard property with an unexpired term of less than seventy years suitable security. As well as impacting your ability to sell, it is also relevant where you are intending to remortgage your St Ives home.

What makes us experts in St Ives lease extensions?

Using our service gives you enhanced control over the value of your St Ives leasehold, as your property will be more valuable and saleable in respect of lease length should you wish 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 Ives Lease Extension Example Cases:

Hugo, St Ives, Cornwall,

Hugo owned a conversion flat in St Ives being sold with a lease of fraction over 59 years outstanding. Hugo informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Hugo to invoke his statutory right. Hugo procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.

St Ives case:

In 2009 we were phoned by Dr S Allen who, having purchased a purpose-built apartment in St Ives in November 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparative premises in St Ives with a long lease were in the region of £260,000. The average ground rent payable was £50 billed annually. The lease expiry date was in 2098. Considering the 72 years remaining we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.

St Ives case:

Last month we were e-mailed by Dr Blake Wood , who owned a garden flat in St Ives in February 1999. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical residencies in St Ives with a long lease were in the region of £256,600. The average ground rent payable was £60 invoiced every twelve months. The lease elapsed on 12 February 2078. Given that there were 52 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £41,800 and £48,400 not including costs.