Why you should start your Barnard Castle lease extension

Top reasons for lease extension now:

Increase your lease and increase your Barnard Castle property value

Barnard Castle leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Barnard Castle will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some cases you may not qualify. There are also strict deadlines and steps to follow once the process has started so it’s wise to be guided by a conveyancer during the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may decide not to lend on a short lease

Banks and building societies are really clamping down as regards to homes in Barnard Castle with short leases. For instance you might discover that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so if you needed to sell, your only options would be to find a cash purchaser, or try your luck at auction thus narrowing the amount of prospective purchasers.

What makes us experts in Barnard Castle lease extensions?

The lawyers that we work with procure Barnard Castle 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 conveyancer we work with provide it.

Barnard Castle Lease Extension Case Studies:

Amy, Barnard Castle, County Durham,

Following lengthy discussions with the freeholder of her first floor flat in Barnard Castle, Amy initiated the lease extension process as the eighty year threshold was fast nearing. The legal work was finalised in June 2014. The freeholder’s fees were kept to an absolute minimum.

Barnard Castle case:

Mr and Mrs. S Turner acquired a studio apartment in Barnard Castle in January 2010. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Barnard Castle with a long lease were worth £260,000. The average ground rent payable was £50 billed annually. The lease concluded on 23 October 2097. Considering the 71 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.

Barnard Castle case:

In 2009 we were approached by Mr Ali Martin who, having completed a one bedroom apartment in Barnard Castle in April 2007. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable homes in Barnard Castle with a long lease were in the region of £254,200. The average ground rent payable was £60 billed per annum. The lease came to a finish in 2077. Given that there were 51 years outstanding we calculated the premium to the landlord to extend the lease to be between £43,700 and £50,600 not including fees.