Top reasons for Fulwell lease extension

Why you should commence your Fulwell lease extension today:

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

For those whose Fulwell home is held on a long lease, the message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Fulwell with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders will not issue a mortgage with a short lease

The trend since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by banks has increased. Historically banks were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Fulwell lease extensions?

Regardless of whether you are a tenant or a freeholder in Fulwell,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Fulwell valuers.

Fulwell Lease Extension Example Cases:

Charlie, Fulwell, Tyne And Wear

14 months ago Charlie, started to get near to the eighty-year threshold with the lease on his ground floor flat in Fulwell. In buying his flat two decades ago, the unexpired term was of little bearing. by good luck, he realised he would imminently be paying an inflated amount for Extending the lease. Charlie was able to extend his lease just under the wire last August. Charlie and the landlord in the end settled on sum of £5,500 . If the lease had fallen below eighty years, the price would have gone up by at least £1,100.

Fulwell case:

Mr and Mrs. O Jones bought a one bedroom flat in Fulwell in October 2010. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical residencies in Fulwell with an extended lease were worth £193,400. The mid-range amount of ground rent was £65 invoiced monthly. The lease elapsed in 2085. Considering the 59 years outstanding we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including costs.