Main reasons to start your Chester le Street lease extension

Top reasons for lease extension now:

A Chester le Street lease depreciates with the years remaining on the lease.

Chester le Street 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 your lease becomes more expensive. Most owners of residential leasehold property in Chester le Street enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Chester le Street you really ought to investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Chester le Street flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay

Chester le Street property with a lease extension is almost the same value as a freehold

Leasehold premises in Chester le Street with in excess of 100 years outstanding on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies will not grant a mortgage on a short lease

Mortgage companies are really clamping down as regards to homes in Chester le Street with short leases. For instance you might discover that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so if you needed to sell, your remaining options would be to find a cash purchaser, or hope for the best at auction thus narrowing the number of potential purchasers.

Get in touch with one of our Chester le Street lease extension solicitors or enfranchisement solicitors

Lease extensions in Chester le Street can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Chester le Street lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Chester le Street Lease Extension Case Summaries:

Joseph, Chester le Street, Tyne And Wear

During the course of the last few months Joseph, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Chester le Street. In buying his home 19 years ago, the lease term was of little concern. Fortunately, he noticed he needed to take steps soon on a lease extension. Joseph arranged for a lease extension just under the wire last September. Joseph and the landlord who owned the flat above in the end agreed on the final figure of £5,000 . If he failed to meet the deadline, the amount would have increased by at least £1,050.

Chester le Street case:

In 2010 we were approached by Dr Tyler Gómez who, having purchased a first floor flat in Chester le Street in March 2009. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative properties in Chester le Street with a long lease were valued around £193,400. The average amount of ground rent was £65 invoiced per annum. The lease concluded in 2085. Taking into account 59 years remaining we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus costs.

Chester le Street case:

Last Christmas we were called by Mrs Danielle Roux , who owned a one bedroom flat in Chester le Street in March 2009. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Identical flats in Chester le Street with an extended lease were in the region of £250,000. The average ground rent payable was £50 billed monthly. The lease lapsed in 2096. Given that there were 70 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.