Why you should start your Billingham lease extension

Top reasons for lease extension now:

A Billingham leasehold property depreciates with the years remaining on the lease.

The value of Billingham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the remaining term is below than 80 years

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

Leasehold premises in Billingham with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. 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 not issue a mortgage with a short lease

Mortgage companies are inclined not grant a mortgage on short residential leases. You are likely to experience difficulties where you want to sell your flat in Billingham if the remaining lease term is less than the criteria set by most banks and building societies. Different mortgage companies have varying criteria but in the main theyrequire an unexpired term of at least 65 years.

What makes us experts in Billingham lease extensions?

The conveyancing solicitors that we work with undertake Billingham 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 conveyancing solicitor we work with provide it.

Billingham Lease Extension Example Cases:

Reuben, Billingham, County Durham,

Reuben owned a conversion flat in Billingham being sold with a lease of fraction over 72 years remaining. Reuben on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be payable on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert legal guidance and secured an acceptable deal without going to tribunal and sell the property.

Billingham case:

Last Autumn we were called by Dr Jack Howard , who purchased a first floor flat in Billingham in June 2004. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative residencies in Billingham with 100 year plus lease were in the region of £191,400. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease came to a finish in 2080. Having 54 years unexpired we calculated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of legals.

Billingham case:

In 2011 we were approached by Mr D Anderson who, having was assigned a lease of a purpose-built apartment in Billingham in April 1999. The dilemma was if we could approximate the premium would be to extend the lease by ninety years. Identical homes in Billingham with a long lease were valued about £295,000. The mid-range ground rent payable was £45 invoiced yearly. The lease came to a finish in 2100. Taking into account 74 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.