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Top reasons for Topsham lease extension


Main reasons to start your Topsham lease extension today:

A Topsham lease depreciates with the years remaining on the lease.

As the the remaining lease term of a Topsham domestic lease decreases so does its value and therefore the value of your property. Where the lease has, beyond 100 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Topsham will meet the qualifying criteria; however a conveyancing solicitor will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

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

It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Mortgage lenders may decide not to grant a mortgage on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the unexpired lease term required by banks has increased. Historically lenders were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Chelsea Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Halifax Minimum 70 years from the date of the mortgage.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.

What makes us experts in Topsham lease extensions?

The conveyancers that we work with handle Topsham 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.

Topsham Lease Extension Example Cases:

Blake, Topsham, Devon

Last Christmas Blake, came dangerously near to the eighty-year mark with the lease on his studio flat in Topsham. In buying his home 18 years previously, the unexpired term was of little importance. Thankfully, he recognised he would imminently be paying an escalated premium for Extending the lease. Blake extended the lease just under the wire in September. Blake and the landlord who owned the flat above in the end agreed on the final figure of £6,000 . If the lease had dropped to less than eighty years, the price would have become more exhorbitant by at least £1,025.

Topsham case:

Last year we were contacted by Mr and Mrs. P David , who completed a studio flat in Topsham in May 2002. The dilemma was if we could estimate the price would be for a ninety year lease extension. Similar flats in Topsham with an extended lease were worth £225,800. The mid-range amount of ground rent was £60 billed yearly. The lease came to a finish in 2084. Given that there were 60 years unexpired we calculated the premium to the landlord to extend the lease to be between £25,700 and £29,600 plus fees.

Topsham case:

Dr C Michel owned a first floor apartment in Topsham in July 2008. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar residencies in Topsham with an extended lease were valued around £210,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease elapsed on 5 June 2104. Having 80 years left we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.