Hurworth Lease Extension - Free Consultation

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Why you should start your Hurworth lease extension


Top reasons for lease extension now:

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

There is no doubt about it a leasehold property in Hurworth is a wasting asset as a result of the shortening lease. Where the residual term has, over one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Hurworth will qualify for this right; that being said a lawyer will be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

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

It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.

Lending institutions may not issue a mortgage with a short lease

Banks and building societies are inclined not lend on short residential leases. You most probably experience problems where you wish to sell your flat in Hurworth if the unexpired term of your lease is under the criteria set by the majority of banks and building societies. Different mortgage companies have different requirements but on the whole they are looking for an unexpired term of at least 65 years.

Lender Requirement
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Chelsea Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Coventry Building Society A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Godiva Mortgages A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Halifax Minimum 70 years from the date of the mortgage.

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

The lawyers that we work with procure Hurworth 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.

Hurworth Lease Extension Case Studies:

Ellen, Hurworth, County Durham,

Subsequent to protracted discussions with the landlord of her garden flat in Hurworth, Ellen initiated the lease extension process as the 80 year threshold was swiftly nearing. The legal work completed in April 2009. The freeholder’s charges were negotiated to about 600 GBP.

Hurworth case:

Last month we were approach by Mrs L Morris , who took over the lease of a ground floor flat in Hurworth in March 2006. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Hurworth with a long lease were valued around £215,600. The average amount of ground rent was £45 invoiced every twelve months. The lease concluded on 8 September 2086. Given that there were 62 years unexpired we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus costs.

Hurworth case:

In 2012 we were contacted by Mrs W Turner who, having purchased a purpose-built flat in Hurworth in August 2012. The question was if we could estimate the price could be for a 90 year lease extension. Comparable residencies in Hurworth with a long lease were valued around £265,000. The average ground rent payable was £50 billed yearly. The lease came to a finish on 23 November 2097. Given that there were 73 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.