Top reasons for Billingham lease extension

Main reasons to start your Billingham lease extension today:

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

Billingham leases on residential properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Billingham will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some situations you may not qualify. There are prescribed deadlines and procedures to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent 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 will not issue a mortgage with a short lease

The trend since over the last decade has been for banks to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies were content with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined 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 Billingham?

The conveyancers that we work with procure 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 lawyer we work with provide it.

Billingham Lease Extension Case Summaries:

Gabriel, Billingham, County Durham

Two years ago Gabriel, started to get near to the 80-year mark with the lease on his first floor apartment in Billingham. In buying his home 19 years ago, the unexpired term was of minimal concern. by good luck, he noticed he would imminently be paying way over the odds for a lease extension. Gabriel extended the lease at the eleventh hour last May. Gabriel and the landlord in the end settled on an amount of £6,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by a minimum £875.

Billingham case:

Last Spring we were phoned by Mr Blake Petit , who owned a ground floor flat in Billingham in October 1997. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparable premises in Billingham with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 collected monthly. The lease lapsed in 2099. Taking into account 73 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.

Billingham case:

Last Spring we were approach by Mrs Ella Jackson , who moved into a studio apartment in Billingham in January 2001. The question was if we could approximate the price would be for a 90 year lease extension. Comparative premises in Billingham with 100 year plus lease were in the region of £240,600. The average ground rent payable was £60 billed per annum. The lease lapsed on 6 April 2088. Given that there were 62 years remaining we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus costs.