Top reasons for Haltwhistle lease extension

Why you should start your Haltwhistle lease extension today:

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

Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Haltwhistle. Inevitably, the period of lease left reduces over time. This may pass by relatively unnoticed when the flat or house has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Haltwhistle have the right to extend the lease for a further ninety years in accordance with legislation. Please give careful deliberation before putting off your Haltwhistle lease extension. Holding off the cost now simply increases the price you will eventually incur for a lease extension

An extended lease has roughly the same value as a freehold

Leasehold premises in Haltwhistle with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders will not grant a mortgage on a short lease

Almost all banks and building societies will be unwilling to grant a mortgage on a lease with less than 70 years remaining - although this varies from lender to lender. A purchaser will likely find it difficult to obtain a mortgage and this could result in your Haltwhistle property being difficult to sell or to obtain finance on.

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

Regardless of whether you are a tenant or a landlord in Haltwhistle,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Haltwhistle valuers.

Haltwhistle Lease Extension Case Studies:

Freddie, Haltwhistle, Northumberland,

Freddie owned a studio apartment in Haltwhistle on the market with a lease of just over 59 years remaining. Freddie on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.

Haltwhistle case:

Last Summer we were called by Mr and Mrs. T Bernard , who was assigned a lease of a basement flat in Haltwhistle in June 2007. The dilemma was if we could estimate the price would be for a ninety year lease extension. Similar flats in Haltwhistle with an extended lease were worth £280,000. The average ground rent payable was £55 collected every twelve months. The lease expired in 2104. Considering the 78 years as a residual term we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.

Haltwhistle case:

Mr K Morel acquired a purpose-built apartment in Haltwhistle in August 2008. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Haltwhistle with 100 year plus lease were worth £186,000. The mid-range amount of ground rent was £65 collected yearly. The lease came to a finish on 21 May 2084. Considering the 58 years remaining we approximated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 not including professional charges.