Main reasons to start your Consett lease extension

Top reasons for lease extension now:

Increase your lease and increase your Consett property value

The only way is down when it comes to Consett lease terms. Consett leaseholds that have a residual term lower than eighty years will drop in market price even faster, and the cost of extending your lease will go up.

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

It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Mortgage lenders may decide not to finance a property with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the home loan 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 - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

The conveyancing solicitors that we work with procure Consett 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 conveyancing solicitor we work with provide it.

Consett Lease Extension Case Summaries:

Aiden, Consett, County Durham

Two years ago Aiden, started to get close to the 80-year threshold with the lease on his basement flat in Consett. In buying his flat twenty years ago, the unexpired term was of no bearing. Luckily, he noticed he needed to take action soon on Extending the lease. Aiden arranged for a lease extension just under the wire last July. Aiden and the freeholder ultimately settled on sum of £5,000 . If the lease had slipped below 80 years, the premium would have increased by at least £925.

Consett case:

In 2014 we were phoned by Ms Caitlin Nelson who, having bought a one bedroom apartment in Consett in October 1997. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Similar premises in Consett with 100 year plus lease were valued around £257,800. The average ground rent payable was £65 invoiced monthly. The lease expired in 2091. Taking into account 65 years remaining we calculated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 not including legals.

Consett case:

Mr W Nelson took over the lease of a purpose-built flat in Consett in November 2005. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Identical flats in Consett with an extended lease were worth £191,400. The mid-range amount of ground rent was £55 collected every twelve months. The lease expired on 28 February 2080. Considering the 54 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 not including expenses.