Top reasons for Belford lease extension

Main reasons to start your Belford lease extension today:

Increase your lease and increase your Belford property value

Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Belford. Inevitably, the period of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Belford have the right to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Please give due deliberation before delaying your Belford lease extension. Putting off that expense now only increases the price you will eventually incur to extend your lease

Belford property with a lease extension has roughly the same value as a freehold

Leasehold premises in Belford with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.

Lending institutions may decide not to issue a mortgage on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. In the past lenders would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Belford?

Using our service will provide you better control over the value of your Belford leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Belford Lease Extension Case Studies:

James, Belford, Northumberland

In 2014 James, started to get close to the eighty-year threshold with the lease on his garden apartment in Belford. In buying his flat 18 years previously, the unexpired term was of minimal concern. As luck would have it, he realised he needed to take action soon on a lease extension. James was able to extend his lease just under the wire last September. James and the freeholder in the end agreed on sum of £5,000 . If the lease had dipped below 80 years, the premium would have gone up by a minimum £1,025.

Belford case:

Mr and Mrs. W Baker was assigned a lease of a ground floor flat in Belford in May 2012. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative premises in Belford with an extended lease were in the region of £285,000. The average ground rent payable was £55 invoiced yearly. The lease elapsed in 2105. Taking into account 79 years outstanding we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.

Belford case:

Mr K Sánchez purchased a one bedroom apartment in Belford in August 2006. We are asked if we could approximate the price could be to extend the lease by an additional years. Comparable homes in Belford with a long lease were in the region of £193,400. The average amount of ground rent was £65 collected monthly. The lease finished on 22 September 2085. Having 59 years left we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus professional charges.