Why you should start your Alnwick lease extension

Top reasons for lease extension now:

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

The market value of a leasehold property in Alnwick is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. Ideally one should start the lease extension process when the lease still has 82 years remaining so that a lease extension can be finalised prior to the eighty year cut off point. Current legislation enables Alnwick qualifying lessees to an additional term of 90 years on top of the unexpired term, at a notional rent (zero ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold residencies in Alnwick with over one hundred years remaining 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Lending institutions may not lend on a short lease

Mortgage lenders have set criteria when lending funds charged on leasehold property. Some will simply not lend at all once the residual lease term goes below a specified unexpired lease term. Many Mortgage lenders will not consider property with a remaining term of less than 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant where you are seeking to refinance your Alnwick property.

Why use us for your lease extension in Alnwick?

Lease extensions in Alnwick can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Alnwick lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Alnwick Lease Extension Example Cases:

Caitlin, Alnwick, Northumberland,

Off the back of protracted negotiations with the landlord of her first floor apartment in Alnwick, Caitlin commenced the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction was finalised in August 2007. The freeholder’s fees were negotiated to less than 700 pounds.

Alnwick case:

In 2010 we were e-mailed by Mr Joseph López who, having owned a one bedroom apartment in Alnwick in March 2006. The question was if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Comparative premises in Alnwick with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease ended on 7 March 2101. Having 75 years left we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.

Alnwick case:

Mr and Mrs. J Bailey took over the lease of a studio apartment in Alnwick in April 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Comparative properties in Alnwick with an extended lease were in the region of £250,400. The average amount of ground rent was £65 billed quarterly. The lease came to a finish on 14 September 2090. Having 64 years left we approximated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 plus fees.