Main reasons to start your Chester le Street lease extension

Main reasons to start your Chester le Street lease extension today:

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

Chester le Street leases on residential deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Chester le Street will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.

An extended lease 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 often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

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

Most mortgage companies will not grant a mortgage on a lease with less than seventy years left to run - although this varies from lender to lender. A purchaser will undoubtedly find it difficult in obtaining a mortgage and this will result in your Chester le Street property being difficult to dispose of or remortgage.

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

Retaining our service will provide you better control over the value of your Chester le Street leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Chester le Street Lease Extension Example Cases:

Shannon, Chester le Street, Tyne And Wear,

Subsequent to unsuccessful discussions with the landlord of her one bedroom apartment in Chester le Street, Shannon initiated the lease extension process just as her lease was nearing the critical 80-year deadline. The lease extension was concluded in March 2005. The landlord’s costs were kept to an absolute minimum.

Chester le Street case:

Dr Jackson Davis owned a ground floor flat in Chester le Street in January 1999. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar residencies in Chester le Street with an extended lease were worth £270,000. The average ground rent payable was £55 collected yearly. The lease expired on 8 April 2101. Taking into account 75 years left we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.

Chester le Street case:

Mr and Mrs. W François bought a purpose-built apartment in Chester le Street in May 2012. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Chester le Street with a long lease were valued about £168,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease elapsed in 2081. Given that there were 55 years left we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus costs.