Why you should commence your Birtley lease extension

Why you should start your Birtley lease extension today:

Increase your lease and increase your Birtley property value

Birtley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Birtley residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Birtley you must check if your lease has between 70 and 90 years left. There are good reasons why a Birtley leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is put in place without delay

An extended lease is almost the same value as a freehold

Leasehold properties in Birtley with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not issue a mortgage on a short lease

Most mortgage lenders have tightened lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are considered to be inadequate security.

Why use us for your lease extension in Birtley?

Using our service gives you increased control over the value of your Birtley leasehold, as your property will be more valuable and saleable in respect of lease length should you decide 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.

Birtley Lease Extension Example Cases:

Emily, Birtley, Tyne And Wear,

After unsuccessful correspondence with the landlord of her basement flat in Birtley, Emily commenced the lease extension process as the eighty year deadline was swiftly advancing. The transaction completed in February 2007. The landlord’s costs were restricted to a tad over 600 pounds.

Birtley case:

In 2013 we were approached by Mrs G Khan who, having acquired a studio apartment in Birtley in February 2010. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical residencies in Birtley with 100 year plus lease were valued around £285,000. The average amount of ground rent was £45 billed every twelve months. The lease finished in 2097. Given that there were 71 years remaining we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.

Birtley case:

Mr and Mrs. N David took over the lease of a first floor flat in Birtley in May 2010. The question was if we could estimate the premium would be for a 90 year lease extension. Identical flats in Birtley with a long lease were worth £225,800. The mid-range ground rent payable was £60 collected quarterly. The lease end date was on 23 August 2086. Given that there were 60 years unexpired we approximated the premium to the freeholder to extend the lease to be within £25,700 and £29,600 not including professional charges.