Why you should commence your Dunston lease extension

Top reasons for lease extension now:

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

Dunston leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Dunston enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Dunston you must check if your lease has between seventy and 90 years left. There are good reasons why a Dunston flat owner with a lease having around 80 years left should take action to ensure that a lease extension is effected without delay

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

Leasehold residencies in Dunston with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Mortgage lenders will not issue a mortgage on a short lease

Nearly all mortgage companies insist on a lengthy amount of time remaining on a leasehold residence before they will consider it as adequate security. Even if you don't need a mortgage, you should bear in mind that it is likely that someone wanting to acquire your property in the future might well do, so in the event that they are not able to get a mortgage, then the value of the property could suffer. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are prepared to accept

Why use us for your lease extension in Dunston?

Using our service gives you increased control over the value of your Dunston leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Dunston Lease Extension Example Cases:

Laura, Dunston, Tyne And Wear,

Off the back of unsuccessful discussions with the freeholder of her studio flat in Dunston, Laura initiated the lease extension process as the eighty year threshold was quickly coming. The transaction completed in April 2011. The landlord’s fees were kept to an absolute minimum.

Dunston case:

Dr Lily Stewart acquired a one bedroom apartment in Dunston in September 1995. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparative residencies in Dunston with an extended lease were in the region of £243,000. The average amount of ground rent was £65 billed yearly. The lease ended on 8 August 2089. Given that there were 63 years remaining we approximated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including costs.

Dunston case:

Last Autumn we were phoned by Mr and Mrs. V Watson , who purchased a one bedroom flat in Dunston in October 1998. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar homes in Dunston with a long lease were in the region of £181,600. The average ground rent payable was £55 invoiced yearly. The lease ended in 2078. Considering the 52 years remaining we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including costs.