Why you should commence your Coxhoe lease extension

Top reasons for lease extension now:

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

As the the remaining lease term of a Coxhoe domestic lease diminished so does its value and therefore the value of your property. Where the lease has, in excess of one hundred years remaining then this decrease may be negligible however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. The majority of flat owners in Coxhoe will qualify for this right; however a conveyancing solicitor should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

Coxhoe property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.

Lending institutions may not finance a property with a short lease

The propensity since over the last decade has been for banks to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has resulted in the unexpired lease term required by banks has increased. Historically banks were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Coxhoe lease extensions?

The conveyancing solicitors that we work with procure Coxhoe 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.

Coxhoe Lease Extension Case Summaries:

Jade, Coxhoe, County Durham,

Subsequent to lengthy discussions with the freeholder of her ground floor flat in Coxhoe, Jade started the lease extension process as the eighty year mark was quickly nearing. The legal work completed in October 2014. The freeholder’s costs were restricted to about 700 pounds.

Coxhoe case:

Dr Dylan Vincent moved into a garden flat in Coxhoe in November 2010. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Identical flats in Coxhoe with a long lease were valued around £285,000. The mid-range amount of ground rent was £55 collected annually. The lease ran out in 2106. Considering the 80 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.

Coxhoe case:

In 2013 we were approached by Dr Anna Scott who, having took over the lease of a one bedroom flat in Coxhoe in September 2008. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical properties in Coxhoe with 100 year plus lease were valued around £200,800. The average ground rent payable was £65 billed annually. The lease end date was on 27 August 2086. Taking into account 60 years remaining we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including professional charges.