Main reasons to commence your Yelverton lease extension

Why you should start your Yelverton lease extension today:

Increase your lease and increase your Yelverton property value

With a long leasehold premises in Yelverton, you are actually buying a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than eighty years remaining. Leasehold owners in Yelverton with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once a lease has fewer than eighty years remaining, under the current Act the freeholder is entitled to calculate and demand a greater premium, based on a technical computation, known as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold residencies in Yelverton with more than one hundred years remaining 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions may not lend on a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has resulted in the unexpired lease term required by banks has increased. Historically mortgage companies were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

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

Lease extensions in Yelverton can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Yelverton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Yelverton Lease Extension Case Summaries:

Kian, Yelverton, Devon

In 2014 Kian, came perilously near to the 80-year threshold with the lease on his purpose- built apartment in Yelverton. In buying his home 18 years previously, the lease term was of minimal concern. Fortunately, he noticed he needed to take steps soon on a lease extension. Kian arranged for a lease extension at the eleventh hour in January. Kian and the freeholder eventually agreed on an amount of £5,500 . If the lease had gone to less than eighty years, the premium would have become more exhorbitant by at least £900.

Yelverton case:

In 2010 we were called by Mr and Mrs. M Fournier who, having completed a basement apartment in Yelverton in June 1998. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Comparable homes in Yelverton with a long lease were in the region of £223,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease expiry date was on 6 March 2085. Given that there were 59 years left we approximated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 plus legals.

Yelverton case:

In 2010 we were approached by Mr Owen Young who, having took over the lease of a one bedroom flat in Yelverton in November 1996. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Identical residencies in Yelverton with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 billed annually. The lease end date was in 2105. Given that there were 79 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.