Why you should start your Corbridge lease extension

Why you should start your Corbridge lease extension today:

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

Corbridge leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Corbridge will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain circumstances you may not qualify. There are also strict timetables and steps to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.

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

Mortgage companies are tightening their criteria and a meaningful number now expect flats to have a minimum of sixty if not seventy years remaining once the mortgage has expired. Given that plenty of flats in Corbridge were created in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to obtain a mortgage.

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

The conveyancing solicitors that we work with undertake Corbridge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Corbridge Lease Extension Example Cases:

Sebastian, Corbridge, Northumberland,

Sebastian owned a conversion apartment in Corbridge being sold with a lease of just over sixty years unexpired. Sebastian on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Sebastian to invoke his statutory right. Sebastian obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.

Corbridge case:

Last year we were contacted by Ms Jordan Mercier , who completed a one bedroom flat in Corbridge in June 2001. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Corbridge with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 billed quarterly. The lease ran out on 10 March 2098. Taking into account 72 years unexpired we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.

Corbridge case:

In 2009 we were e-mailed by Ms W Ward who, having owned a garden flat in Corbridge in April 2000. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Comparable residencies in Corbridge with 100 year plus lease were in the region of £233,200. The mid-range ground rent payable was £60 billed yearly. The lease termination date was on 10 September 2087. Taking into account 61 years left we calculated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 not including expenses.