Main reasons to commence your Fulwell lease extension

Why you should commence your Fulwell lease extension today:

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

Unfortunately that a Fulwell residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Fulwell property market.Once your lease gets to 85ish years, you should start thinking about 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 amount will be due. Most leasehold owners in Fulwell will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.

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

Leasehold properties in Fulwell with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.

Mortgage lenders may decide not to grant a mortgage with a short lease

Banks and building societies are inclined not lend on short residential leases. You are likely to encounter difficulties if you want to sell your flat in Fulwell if the unexpired lease term is under the criteria set by the majority of banks and building societies. Different lenders have different requirements but generally theyrequire an unexpired term of at least 65 years.

Why use us for your lease extension in Fulwell?

The lawyers that we work with procure Fulwell 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.

Fulwell Lease Extension Example Cases:

Tommy, Fulwell, Tyne And Wear,

Tommy was the the leasehold proprietor of a high value flat in Fulwell being marketed with a lease of just over 72 years remaining. Tommy on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Tommy to exercise his statutory right. Tommy procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.

Fulwell case:

Last month we were e-mailed by Mr Oscar Nelson , who bought a studio flat in Fulwell in January 2012. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Fulwell with an extended lease were valued about £280,000. The average ground rent payable was £55 collected every twelve months. The lease expired on 8 November 2104. Given that there were 78 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.