Why you should commence your Gateshead lease extension

Top reasons for lease extension now:

A Gateshead lease depreciates with the years remaining on the lease.

The only way is down when it comes to Gateshead lease terms. Gateshead flats that have a remaining term shorter than eighty years will drop in value even faster, and the cost of extending your lease will increase.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not issue a mortgage with a short lease

Almost all mortgage companies require a lengthy amount of time remaining on any leasehold property before they will contemplate it as adequate security. Regardless of whether you need a mortgage, you should bear in mind that it is likely that someone wishing to acquire your property in the future might well do, so if they are unable to obtain a mortgage, then the value of your property could suffer. Since 2008 most mortgage lenders have increased the required minimum lease length that they are prepared to accept

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

Lease extensions in Gateshead can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in lease extensions.

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 a wealth of experience procuring Gateshead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Gateshead Lease Extension Case Studies:

Finn, Gateshead, Tyne And Wear,

Finn was the the leasehold owner of a studio flat in Gateshead being sold with a lease of a little over 61 years unexpired. Finn informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Finn to invoke his statutory right. Finn obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.

Gateshead case:

Mrs Gemma Clarke was assigned a lease of a one bedroom flat in Gateshead in April 1998. The question was if we could estimate the premium would likely be to prolong the lease by ninety years. Similar residencies in Gateshead with an extended lease were valued around £290,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease terminated on 10 June 2099. Taking into account 73 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.

Gateshead case:

In 2010 we were e-mailed by Mr and Mrs. E Nguyen who, having purchased a one bedroom flat in Gateshead in August 1995. The question was if we could estimate the premium could be for a ninety year extension to my lease. Identical flats in Gateshead with 100 year plus lease were valued around £240,600. The average amount of ground rent was £65 billed yearly. The lease elapsed in 2088. Considering the 62 years remaining we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of legals.