Main reasons to start your Consett lease extension

Top reasons for lease extension now:

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

Consett leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Consett residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Consett you must investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

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

It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.

Banks and Building Societies will not issue a mortgage with a short lease

Nearly all mortgage lenders will not grant a mortgage on a lease with under 70 years remaining - although this varies between mortgage companies. A purchaser will undoubtedly find it difficult to obtain a mortgage and this could result in your Consett property being difficult to sell or to obtain finance on.

What makes us experts in Consett lease extensions?

Retaining our service gives you increased control over the value of your Consett leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Consett Lease Extension Case Studies:

Tia, Consett, County Durham,

Following protracted discussions with the freeholder of her ground floor flat in Consett, Tia commenced the lease extension process just as her lease was nearing the critical 80-year deadline. The lease extension completed in November 2014. The landlord’s fees were kept to an absolute minimum.

Consett case:

Mr David Brooks owned a purpose-built apartment in Consett in August 2007. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable premises in Consett with an extended lease were in the region of £233,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ended on 20 May 2087. Given that there were 61 years remaining we calculated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of expenses.

Consett case:

Last Summer we were e-mailed by Mrs Harriet Lefèvre , who purchased a first floor apartment in Consett in August 2000. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical homes in Consett with a long lease were worth £166,800. The average amount of ground rent was £55 collected per annum. The lease came to a finish on 22 July 2076. Taking into account 50 years outstanding we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including costs.