Top reasons for Alnwick lease extension

Top reasons for lease extension now:

Increase your lease and increase your Alnwick property value

Alnwick leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Alnwick tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Alnwick you should see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold residencies in Alnwick with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.

Lending institutions may not grant a mortgage on a short lease

Banks and Building Societies have set criteria when loaning funds charged on leasehold homes. Some will simply not lend at all once an unexpired lease term slips under a specified unexpired lease term. Many Mortgage lenders will not regard property with an unexpired term of less than 75 years as acceptable security. In addition to this being important when selling, it is also relevant where you are seeking to remortgage your Alnwick home.

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

The lawyers that we work with procure Alnwick 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.

Alnwick Lease Extension Example Cases:

Isabel, Alnwick, Northumberland,

In the wake of 6 months of lengthy negotiations with the landlord of her basement flat in Alnwick, Isabel started the lease extension process just as the lease was nearing the critical 80-year deadline. The legal work was finalised in January 2015. The landlord’s fees were kept to an absolute minimum.

Alnwick case:

In 2010 we were approached by Dr Tyler Cooper who, having was assigned a lease of a purpose-built flat in Alnwick in February 1997. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical homes in Alnwick with 100 year plus lease were valued around £243,000. The mid-range ground rent payable was £65 billed per annum. The lease expired in 2089. Given that there were 63 years unexpired we calculated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus legals.

Alnwick case:

Mrs L Turner completed a one bedroom flat in Alnwick in May 2002. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparative homes in Alnwick with a long lease were worth £181,600. The average ground rent payable was £55 collected quarterly. The lease came to a finish in 2078. Considering the 52 years outstanding we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus expenses.