Top reasons for Consett lease extension

Main reasons to start your Consett lease extension today:

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

With a residential leasehold premises in Consett, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years left. Anyone in Consett with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has below 80 years left, under the relevant legislation the landlord is entitled to calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Mortgage lenders may decide not to issue a mortgage on a short lease

Lenders are making their criteria more stringent and a meaningful number now require flats to have a minimum of sixty if not seventy years remaining at the end of the mortgage. Given that many flats in Consett were created in the fifties, sixties and seventies as a result many now need to be extended if they if they are to be mortgageable.

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

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

Consett Lease Extension Case Studies:

Ryan, Consett, County Durham

Last October Ryan, started to get near to the 80-year threshold with the lease on his studio apartment in Consett. Having bought his property two decades ago, the unexpired term was of minimal significance. Thankfully, he noticed he needed to take steps soon on Extending the lease. Ryan was able to extend his lease just under the wire last March. Ryan and the freeholder in the end settled on a premium of £6,000 . If he not met the deadline, the amount would have increased by a minimum £950.

Consett case:

Ms S Smith moved into a studio flat in Consett in October 2010. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Similar premises in Consett with an extended lease were valued about £275,000. The average amount of ground rent was £45 billed monthly. The lease finished on 4 March 2095. Considering the 69 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.

Consett case:

In 2011 we were phoned by Mr and Mrs. E Nelson who, having acquired a studio flat in Consett in September 2010. The question was if we could approximate the premium would be for a ninety year extension to my lease. Similar flats in Consett with an extended lease were in the region of £216,000. The mid-range ground rent payable was £60 invoiced monthly. The lease expired on 4 March 2084. Taking into account 58 years unexpired we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including fees.