Main reasons to start your Peterlee lease extension

Main reasons to commence your Peterlee lease extension today:

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

The re-sale value of a leasehold property in Peterlee is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be addressed prior to the 80 year cut off point. Leasehold Reform legislation enables Peterlee qualifying lessees to an additional term of ninety years over and above the existing term, at a nominal rent (zero ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Peterlee with more than one hundred years outstanding 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

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

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet banks and building societies start to become nervous at around 75 years. This will cause difficulties once you come to sell or remortgage your property as it will be practically unmortgageable. You might not have an imminent desire to sell but when you do your purchaser must hold off for a couple of years before they can initiate the legal procedures for a lease extension.

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

The conveyancing solicitors that we work with undertake Peterlee 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.

Peterlee Lease Extension Example Cases:

Stephanie, Peterlee, County Durham,

Off the back of lengthy negotiations with the freeholder of her basement apartment in Peterlee, Stephanie commenced the lease extension process as the eighty year deadline was rapidly nearing. The lease extension was concluded in February 2006. The landlord’s fees were restricted to approximately 550 pounds.

Peterlee case:

Last Summer we were e-mailed by Mr T Anderson , who purchased a studio flat in Peterlee in July 1998. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical homes in Peterlee with an extended lease were worth £245,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ran out on 3 November 2094. Given that there were 68 years unexpired we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.

Peterlee case:

Last Summer we were e-mailed by Dr F Smith , who acquired a one bedroom flat in Peterlee in January 2006. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Identical flats in Peterlee with a long lease were worth £285,000. The average amount of ground rent was £55 collected per annum. The lease concluded in 2105. Having 79 years left we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.