Top reasons for Totnes lease extension

Top reasons for lease extension now:

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

On the balance of probabilities if you own a flat in Totnes you actually own a long leasehold interest over your property

Totnes property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions may not finance a property with a short lease

Banks and Building Societies have specific criteria when lending monies secured on leasehold homes. Some will simply not lend at all once the remaining lease term falls lower than a certain unexpired lease term. Many Banks and Building Societies will not consider property with a remaining below 75 years as acceptable security. As well as this being important when selling, it is also relevant if you are intending to remortgage your Totnes home.

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

Irrespective of whether you are a tenant or a landlord in Totnes,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Totnes valuers.

Totnes Lease Extension Case Summaries:

Caitlin, Totnes, Devon,

Trailing protracted discussions with the landlord of her ground floor flat in Totnes, Caitlin commenced the lease extension process just as the lease was nearing the critical eighty-year threshold. The transaction was concluded in June 2010. The landlord’s charges were kept to an absolute minimum.

Totnes case:

In 2011 we were called by Mr and Mrs. S Phillips who, having owned a basement flat in Totnes in July 2008. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical properties in Totnes with 100 year plus lease were valued about £246,800. The average amount of ground rent was £60 collected every twelve months. The lease expiry date was on 4 May 2076. Given that there were 50 years remaining we approximated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 plus expenses.

Totnes case:

Last July we were called by Ms Freya Robinson , who was assigned a lease of a basement flat in Totnes in June 1996. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Comparable properties in Totnes with 100 year plus lease were valued around £200,800. The average ground rent payable was £65 invoiced every twelve months. The lease end date was on 26 March 2086. Considering the 60 years outstanding we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including professional charges.