Why you should start your Fenham lease extension

Top reasons for lease extension now:

Increase your lease and increase your Fenham property value

With a domestic leasehold property in Fenham, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Residents in Fenham with a lease nearing 81 years left should seriously consider extending it sooner than later. Once a lease has fewer than 80 years remaining, under the relevant Act the freeholder is entitled to calculate and levy a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold premises in Fenham with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders will not grant a mortgage with a short lease

Many banks and building societies require a lengthy amount of time remaining on a leasehold property before they will consider it as adequate security. Even if you don't require a mortgage, you should keep in mind that it is reasonable to assume that someone intending to buy your property in the future might well do, so where they are unable to get a mortgage, then the value of your property will likely be adversely impacted. In the last decade most mortgage lenders have increased the required minimum lease length that they are prepared to accept

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

Engaging our service gives you increased control over the value of your Fenham leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Fenham Lease Extension Case Studies:

Louise, Fenham, Tyne And Wear,

After protracted discussions with the freeholder of her garden apartment in Fenham, Louise started the lease extension process as the 80 year deadline was quickly advancing. The transaction was concluded in September 2012. The landlord’s fees were kept to an absolute minimum.

Fenham case:

Mrs Abbie White was assigned a lease of a ground floor apartment in Fenham in February 1995. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparative residencies in Fenham with an extended lease were worth £290,000. The mid-range ground rent payable was £45 billed yearly. The lease end date was in 2099. Considering the 73 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.

Fenham case:

In 2010 we were contacted by Dr P James who, having bought a one bedroom apartment in Fenham in August 2006. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Identical properties in Fenham with a long lease were worth £240,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease end date was in 2088. Taking into account 62 years left we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including legals.