Why you should start your Heaton and Jesmond lease extension

Why you should start your Heaton and Jesmond lease extension today:

Increase your lease and increase your Heaton and Jesmond property value

Heaton and Jesmond leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Heaton and Jesmond tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Heaton and Jesmond you would be well advised to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.

Lenders may not issue a mortgage with a short lease

Mortgage lenders have set criteria when lending funds secured on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term falls beneath a specified unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired term of less than seventy years suitable security. As well as this being important when selling, it is also relevant if you are wanting to remortgage your Heaton and Jesmond property.

What makes us experts in Heaton and Jesmond lease extensions?

The conveyancers that we work with handle Heaton and Jesmond 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 conveyancing solicitor we work with provide it.

Heaton and Jesmond Lease Extension Case Studies:

Alfie, Heaton and Jesmond, Tyne And Wear,

Alfie was the the leasehold owner of a high value flat in Heaton and Jesmond on the market with a lease of fraction over sixty years unexpired. Alfie informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Alfie to exercise his statutory right. Alfie procured expert legal guidance and secured satisfactory deal informally and sell the flat.

Heaton and Jesmond case:

Last month we were contacted by Mrs T André , who purchased a one bedroom flat in Heaton and Jesmond in May 2012. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Comparable flats in Heaton and Jesmond with 100 year plus lease were valued around £205,000. The average amount of ground rent was £50 collected quarterly. The lease ran out in 2105. Considering the 79 years unexpired we calculated the compensation to the landlord to extend the lease to be between £7,600 and £8,800 plus costs.

Heaton and Jesmond case:

In 2010 we were contacted by Dr Phoebe Moore who, having took over the lease of a first floor flat in Heaton and Jesmond in February 2000. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparable homes in Heaton and Jesmond with an extended lease were valued around £275,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease ran out on 22 February 2094. Taking into account 68 years remaining we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.