Why you should commence your Cramlington lease extension

Why you should commence your Cramlington lease extension today:

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

Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Cramlington. Inevitably, the period of lease left shortens over time. This may pass by relatively unnoticed when the residence has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Cramlington have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. Please give due deliberation before delaying your Cramlington lease extension. Holding off that expense now simply increases the price you will ultimately incur to extend your lease

Cramlington property with a lease extension is almost the same value as a freehold

Leasehold premises in Cramlington with over 100 years remaining on the lease are often 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 buying the freehold unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may decide not to lend on a short lease

Banks and building societies are making their criteria more stringent and many now want flats to have at least sixty if not seventy years remaining once the mortgage has expired. Considering many flats in Cramlington were built in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to get a mortgage.

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

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

Cramlington Lease Extension Case Studies:

Gemma, Cramlington, Northumberland,

Off the back of unsuccessful discussions with the landlord of her two bedroom apartment in Cramlington, Gemma started the lease extension process as the eighty year mark was quickly approaching. The lease extension was concluded in November 2009. The freeholder’s fees were kept to an absolute minimum.

Cramlington case:

Last Summer we were contacted by Dr Jade Morgan , who was assigned a lease of a basement flat in Cramlington in October 2008. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable residencies in Cramlington with a long lease were worth £203,200. The average ground rent payable was £65 invoiced monthly. The lease finished on 4 November 2087. Taking into account 61 years as a residual term we approximated the premium to the landlord to extend the lease to be between £19,000 and £22,000 plus legals.

Cramlington case:

In 2011 we were e-mailed by Mr and Mrs. H Flores who, having completed a basement apartment in Cramlington in June 2010. We are asked if we could estimate the price would be for a 90 year lease extension. Identical homes in Cramlington with a long lease were worth £260,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished in 2098. Having 72 years unexpired we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.