Top reasons for St Mawes lease extension

Top reasons for lease extension now:

Increase your lease and increase your St Mawes property value

The market value of a leasehold property in St Mawes is impacted by how long the lease has remaining. If it is close to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be finalised in advance of the eighty year mark. Statute enables St Mawes qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

St Mawes property with a lease extension has roughly the same value as a freehold

Leasehold properties in St Mawes with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies may not loan monies on a short lease

Mortgage companies are making their criteria more stringent and a meaningful number now expect flats to have a minimum of sixty if not seventy years left once the mortgage has expired. As many flats in St Mawes were created in the fifties, sixties and seventies this means many now need to be extended if they wish to obtain a mortgage.

What makes us experts in St Mawes lease extensions?

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

St Mawes Lease Extension Example Cases:

Charlie, St Mawes, Cornwall

Two years ago Charlie, came very near to the 80-year threshold with the lease on his ground floor apartment in St Mawes. In buying his flat 19 years previously, the length of the lease was of minimal interest. Fortunately, it dawned on him that he would soon be paying way over the odds for Extending the lease. Charlie was able to extend his lease just under the wire in March. Charlie and the landlord subsequently settled on an amount of £5,500 . If he had missed the deadline, the amount would have become more costly by at least £975.

St Mawes case:

Mr and Mrs. N Harris was assigned a lease of a studio flat in St Mawes in March 2007. The question was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar properties in St Mawes with an extended lease were in the region of £242,600. The mid-range amount of ground rent was £45 collected monthly. The lease finished in 2093. Taking into account 67 years outstanding we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of fees.

St Mawes case:

Last Spring we were called by Ms Lily Rodríguez , who acquired a one bedroom apartment in St Mawes in March 1996. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable residencies in St Mawes with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 billed quarterly. The lease expired in 2104. Given that there were 78 years as a residual term we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.