Why you should start your Birtley lease extension

Top reasons for lease extension now:

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

Birtley leases on domestic deteriorating in value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Birtley will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has started 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 more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Lending institutions will not loan monies with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to get nervous at around 75 years. This may cause difficulties when you wish to market or refinance your property as it will be practically unmortgageable. You might not have an imminent intention to sell but when you do your purchaser must wait a couple of years before being able to exercise the right to a a lease extension.

What makes us experts in Birtley lease extensions?

Regardless of whether you are a tenant or a freeholder in Birtley,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Birtley valuers.

Birtley Lease Extension Example Cases:

Finn, Birtley, Tyne And Wear,

Finn was the the leasehold proprietor of a studio apartment in Birtley on the market with a lease of just over 72 years outstanding. Finn informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Finn to invoke his statutory right. Finn procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.

Birtley case:

In 2013 we were called by Ms J Khan who, having moved into a recently refurbished flat in Birtley in October 2006. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative properties in Birtley with an extended lease were in the region of £218,400. The average amount of ground rent was £60 billed yearly. The lease expired in 2085. Having 59 years unexpired we approximated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 not including costs.

Birtley case:

Mr and Mrs. U Hall bought a first floor apartment in Birtley in January 2012. The question was if we could estimate the price would be for a 90 year extension to my lease. Identical residencies in Birtley with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 invoiced per annum. The lease elapsed on 2 July 2105. Having 79 years left we approximated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 plus legals.