Top reasons for Fulwell lease extension

Top reasons for lease extension now:

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

Fulwell 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 the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Fulwell residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Fulwell you would be well advised to check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Fulwell leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is actioned without delay

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

Leasehold residencies in Fulwell with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

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

Banks and building societies do not like short residential leases. You are likely to encounter problems where 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 varying criteria but on the whole theyrequire a minimum remaining lease term of 65 years.

What makes us experts in Fulwell lease extensions?

Irrespective of whether you are a tenant or a landlord in Fulwell,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fulwell valuers.

Fulwell Lease Extension Case Summaries:

Kai, Fulwell, Tyne And Wear

During the course of the last few months Kai, came perilously close to the eighty-year threshold with the lease on his ground floor apartment in Fulwell. Having purchased his flat twenty years previously, the unexpired term was of minimal concern. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. Kai was able to extend his lease just in the nick of time in June. Kai and the freeholder via the managing agents ultimately settled on an amount of £5,000 . If the lease had slid to less than eighty years, the figure would have increased by at least £1,100.

Fulwell case:

Mr Noah Adams owned a one bedroom flat in Fulwell in September 1996. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparative premises in Fulwell with an extended lease were valued around £254,200. The average ground rent payable was £60 collected every twelve months. The lease ended in 2077. Having 51 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of legals.