Main reasons to start your Benton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Benton property value

It’s an underpublicised certainty that a Benton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Benton property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be due. The majority of flat owners in Benton will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Benton with over 100 years left 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.

Banks and Building Societies may decide not to issue a mortgage on a short lease

Nearly all banks and building societies will not grant a mortgage on a lease with under 70 years remaining - although this varies from lender to lender. A buyer will no doubt encounter difficulties to obtain a mortgage and this will result in your Benton property becoming difficult to sell or refinance.

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

Engaging our service will provide you enhanced control over the value of your Benton leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Benton Lease Extension Case Studies:

Olivia, Benton, Tyne And Wear,

Following unsuccessful negotiations with the freeholder of her purpose-built apartment in Benton, Olivia initiated the lease extension process just as the lease was coming close to the critical eighty-year deadline. The legal work was concluded in June 2014. The freeholder’s charges were kept to an absolute minimum.

Benton case:

Last Summer we were e-mailed by Mrs H Hall , who owned a one bedroom flat in Benton in February 2000. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar premises in Benton with an extended lease were valued around £216,000. The average amount of ground rent was £60 collected yearly. The lease ended in 2084. Having 58 years unexpired we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.

Benton case:

Last month we were called by Mrs Morgan Thompson , who bought a ground floor flat in Benton in April 2007. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical residencies in Benton with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 billed quarterly. The lease expired in 2105. Taking into account 79 years remaining we approximated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 not including professional charges.