Why you should start your Crook lease extension

Why you should commence your Crook lease extension today:

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

The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Crook may extend the lease for a further 90 years under legislation. Do give careful consideration before delaying your Crook lease extension. Shelving the costs today simply escalates the amount you will ultimately be required to pay to extend the lease.

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

It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.

Lending institutions will not finance a property on a short lease

The propensity since the credit crunch has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

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

The conveyancers that we work with undertake Crook 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.

Crook Lease Extension Case Studies:

Kayleigh, Crook, County Durham,

After protracted discussions with the landlord of her leasehold flat in Crook, Kayleigh commenced the lease extension process just as her lease was nearing the crucial 80-year mark. The transaction was concluded in November 2006. The landlord’s costs were negotiated to below 600 pounds.

Crook case:

Last Autumn we were phoned by Dr L Taylor , who acquired a ground floor flat in Crook in March 2007. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative premises in Crook with an extended lease were valued about £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease came to a finish on 10 July 2096. Given that there were 70 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.

Crook case:

In 2011 we were e-mailed by Mr and Mrs. D Laurent who, having owned a purpose-built apartment in Crook in August 2008. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical premises in Crook with a long lease were worth £223,400. The mid-range ground rent payable was £60 invoiced annually. The lease terminated on 8 August 2085. Given that there were 59 years unexpired we estimated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of professional charges.