Why you should commence your Fenham lease extension

Why you should start your Fenham lease extension today:

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

For those whose Fenham flat is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.

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

It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.

Lending institutions may decide not to issue a mortgage with a short lease

Banks and Building Societies have set criteria when loaning funds charged on leasehold homes. Many will simply refrain from lending at all once the residual lease term falls lower than a specified unexpired lease term. Many Lending institutions will not consider property with a remaining below 75 years as acceptable security. In addition to this being important when selling, it is also relevant where you are wanting to refinance your Fenham home.

Why use us for your lease extension in Fenham?

Lease extensions in Fenham can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in this area.

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

Fenham Lease Extension Case Summaries:

Katie, Fenham, Tyne And Wear,

Following unsuccessful correspondence with the landlord of her first floor flat in Fenham, Katie started the lease extension process as the eighty year deadline was rapidly nearing. The transaction was finalised in August 2007. The freeholder’s costs were kept to an absolute minimum.

Fenham case:

In 2009 we were approached by Ms L Wood who, having moved into a one bedroom apartment in Fenham in June 2008. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative premises in Fenham with 100 year plus lease were valued about £233,200. The mid-range amount of ground rent was £60 collected monthly. The lease expired on 21 August 2087. Considering the 61 years unexpired we calculated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of legals.

Fenham case:

Mr and Mrs. I David moved into a ground floor flat in Fenham in April 2008. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Fenham with an extended lease were valued around £171,800. The mid-range amount of ground rent was £55 billed quarterly. The lease terminated on 10 September 2076. Taking into account 50 years outstanding we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of expenses.