Top reasons for Blyth lease extension

Why you should commence your Blyth lease extension today:

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

Blyth leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Blyth will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Banks and Building Societies may not finance a property with a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to become jittery at around 75 years. This will cause difficulties when you wish to market or remortgage your property as it will be effectively unmortgageable. You may have no immediate plan to sell but when you do your purchaser will need to wait a couple of years before they can commence the legal procedures for a lease extension.

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

Using our service gives you enhanced control over the value of your Blyth leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Blyth Lease Extension Case Studies:

Gabriel, Blyth, Northumberland

16 months ago Gabriel, came perilously near to the 80-year threshold with the lease on his leasehold apartment in Blyth. In buying his property two decades ago, the lease term was of no concern. by good luck, he realised he needed to take action soon on Extending the lease. Gabriel was able to extend his lease just ahead of time last August. Gabriel and the freeholder via the managing agents eventually agreed on an amount of £6,000 . If he had missed the deadline, the premium would have escalated by a minimum £900.

Blyth case:

Mrs Jessica Scott acquired a newly refurbished flat in Blyth in August 2003. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparative premises in Blyth with a long lease were valued about £191,400. The average amount of ground rent was £55 collected quarterly. The lease lapsed on 12 July 2080. Taking into account 54 years remaining we calculated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 not including expenses.

Blyth case:

Mr Aiden Rose completed a one bedroom flat in Blyth in May 2002. The question was if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Similar residencies in Blyth with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ran out in 2100. Given that there were 74 years remaining we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.