Top reasons for Tiverton lease extension

Main reasons to start your Tiverton lease extension today:

A Tiverton leasehold property depreciates with the years remaining on the lease.

Tiverton 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 the lease gets more expensive. It is the case that most Tiverton tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Tiverton you really ought to check if your lease has between seventy and 90 years left. There are compelling reasons why a Tiverton leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is effected without delay

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.

Lenders may not grant a mortgage with a short lease

Most banks have constrained their lending criteria in recent years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly under seventy years as they are deemed to be inadequate for lending purposes.

Get in touch with one of our Tiverton lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with handle Tiverton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Tiverton Lease Extension Case Summaries:

Jamie, Tiverton, Devon

Half a year ago Jamie, started to get close to the eighty-year threshold with the lease on his basement apartment in Tiverton. In buying his home twenty years ago, the unexpired term was of little significance. Fortunately, he recognised he would soon be paying way over the odds for Extending the lease. Jamie was able to extend his lease just in the nick of time last August. Jamie and the freeholder via the management company ultimately settled on sum of £5,500 . If the lease had slid lower than eighty years, the figure would have gone up by at least £1,075.

Tiverton case:

Ms K Ali took over the lease of a basement flat in Tiverton in February 2010. The question was if we could estimate the premium would be to extend the lease by ninety years. Comparable homes in Tiverton with 100 year plus lease were valued around £174,200. The mid-range amount of ground rent was £55 invoiced per annum. The lease finished in 2077. Given that there were 51 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus professional charges.

Tiverton case:

Last Christmas we were approach by Mr and Mrs. G Evans , who took over the lease of a one bedroom flat in Tiverton in November 2004. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparable properties in Tiverton with an extended lease were worth £285,000. The mid-range ground rent payable was £45 collected annually. The lease ran out in 2097. Having 71 years outstanding we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.