Why you should commence your Consett lease extension

Why you should commence your Consett lease extension today:

Increase your lease and increase your Consett property value

Unfortunately that a Consett residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Consett property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. Most flat owners in Consett will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.

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

It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may not loan monies on a short lease

Lending institutions have set criteria when lending monies charged on leasehold homes. Some will simply refrain from lending at all once the remaining lease term falls beneath a certain unexpired lease term. Many Lending institutions will not regard property with an unexpired term of less than 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are wanting to refinance your Consett property.

What makes us experts in Consett lease extensions?

The conveyancers that we work with undertake 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 lawyer we work with provide it.

Consett Lease Extension Case Studies:

Kayleigh, Consett, County Durham,

Following protracted discussions with the landlord of her two bedroom apartment in Consett, Kayleigh started the lease extension process as the eighty year deadline was rapidly nearing. The transaction was finalised in March 2010. The freeholder’s charges were restricted to below 550 pounds.

Consett case:

Last Spring we were called by Mr and Mrs. J Roberts , who moved into a basement flat in Consett in April 2000. The question was if we could estimate the premium would be for a 90 year lease extension. Comparable homes in Consett with a long lease were worth £210,000. The mid-range ground rent payable was £50 invoiced per annum. The lease expired on 7 July 2106. Taking into account 80 years left we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.

Consett case:

Last Spring we were e-mailed by Dr B Garcia , who was assigned a lease of a one bedroom apartment in Consett in February 2002. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar flats in Consett with a long lease were in the region of £275,000. The mid-range ground rent payable was £45 collected per annum. The lease terminated in 2095. Having 69 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.