Why you should commence your Trimdon lease extension

Why you should commence your Trimdon lease extension today:

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

The market value of Trimdon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is less than 80 years

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

Leasehold properties in Trimdon with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not issue a mortgage with a short lease

Mortgage companies are really restricting their approach as regards to properties in Trimdon with short leases. For example you may find that their lending requirements are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus limiting your market.

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

The lawyers that we work with handle Trimdon 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.

Trimdon Lease Extension Case Summaries:

Owen, Trimdon, County Durham,

Owen was the the leasehold proprietor of a studio flat in Trimdon on the market with a lease of fraction over fifty eight years remaining. Owen on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Owen to exercise his statutory right. Owen procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.

Trimdon case:

Dr F Wilson took over the lease of a garden flat in Trimdon in July 1998. The dilemma was if we could estimate the price could be to extend the lease by a further 90 years. Comparable properties in Trimdon with an extended lease were in the region of £225,400. The average ground rent payable was £45 billed every twelve months. The lease expired in 2090. Having 64 years outstanding we estimated the premium to the landlord for the lease extension to be within £15,200 and £17,600 not including costs.

Trimdon case:

Mr and Mrs. T Michel moved into a basement apartment in Trimdon in October 1997. The question was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparative properties in Trimdon with an extended lease were valued around £270,000. The mid-range amount of ground rent was £55 collected per annum. The lease came to a finish in 2101. Considering the 75 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.