Top reasons for Cramlington lease extension

Main reasons to start your Cramlington lease extension today:

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

The re-sale value of a leasehold property in Cramlington depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be addressed ahead of the eighty year threshold. Statute entitles Cramlington qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Cramlington with over 100 years left 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders will not finance a property on a short lease

Almost all banks and building societies will be unwilling to lend on a lease with under 70 years remaining - although this varies between mortgage companies. A buyer will likely find it difficult to obtain a mortgage and this will result in your Cramlington property becoming difficult to sell or refinance.

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

Lease extensions in Cramlington can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.

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 procuring Cramlington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Cramlington Lease Extension Example Cases:

Rosie, Cramlington, Northumberland,

Off the back of unsuccessful discussions with the freeholder of her one bedroom apartment in Cramlington, Rosie started the lease extension process just as her lease was approaching the critical eighty-year threshold. The legal work was concluded in August 2008. The landlord’s charges were kept to an absolute minimum.

Cramlington case:

Last month we were e-mailed by Mrs Y Bennett , who purchased a basement apartment in Cramlington in January 2004. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Cramlington with 100 year plus lease were valued around £285,000. The average ground rent payable was £55 invoiced annually. The lease finished on 13 April 2106. Having 80 years outstanding we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.

Cramlington case:

In 2013 we were contacted by Mrs N Wilson who, having bought a basement apartment in Cramlington in July 1995. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparative premises in Cramlington with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 collected annually. The lease finished in 2086. Taking into account 60 years outstanding we calculated the premium to the landlord for the lease extension to be within £20,900 and £24,200 not including expenses.