Stop! Your Lease Extension in Dunston Could Be FREE

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Many leaseholders in Dunston are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Dunston has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to commence your Dunston lease extension

Top reasons for lease extension now:

Increase your lease and increase your Dunston property value

On the balance of probabilities if you own a flat in Dunston you actually own a long leasehold interest over your property

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

It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lenders may decide not to finance a property on a short lease

Most banks have constrained their lending criteria in the last ten years and borrowers are encountering difficulties in arranging funding or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are regarded as unacceptable for lending purposes.

Lender Requirement
Chelsea Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Leeds Building Society 85 years remaining from the start of the mortgage.
Santander

If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest.

You must report the unexpired lease term to us and await our instructions if: 
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided.
 


We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.

TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Yorkshire Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.

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

The conveyancers that we work with handle Dunston 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 lawyer we work with provide it.

Dunston Lease Extension Case Studies:

Harriet, Dunston, Tyne And Wear,

Following lengthy discussions with the landlord of her first floor flat in Dunston, Harriet started the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The lease extension completed in October 2006. The freeholder’s fees were kept to an absolute minimum.

Dunston case:

Last March we were called by Dr Leo Roberts , who bought a one bedroom flat in Dunston in July 2009. The dilemma was if we could approximate the price would likely be to prolong the lease by 90 years. Identical residencies in Dunston with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease finished in 2101. Having 75 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.

Dunston case:

In 2009 we were approached by Mr C Johnson who, having completed a basement flat in Dunston in February 1996. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Dunston with 100 year plus lease were valued around £250,400. The average amount of ground rent was £65 invoiced yearly. The lease termination date was in 2090. Given that there were 64 years left we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of costs.