Main reasons to commence your Heaton lease extension

Why you should commence your Heaton lease extension today:

Increase your lease and increase your Heaton property value

Heaton residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.

Heaton property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.

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

Mortgage lenders have specific criteria when lending funds secured on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term falls beneath a certain unexpired lease term. Many Mortgage lenders will not regard property with a remaining below seventy years suitable security. As well as this being important when selling, it is also relevant where you are seeking to refinance your Heaton home.

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

Retaining our service will provide you increased control over the value of your Heaton leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Heaton Lease Extension Case Summaries:

Gabriel, Heaton, Tyne And Wear,

Gabriel was the the leasehold proprietor of a 2 bedroom apartment in Heaton being marketed with a lease of a few days over sixty years left. Gabriel informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.

Heaton case:

In 2009 we were contacted by Dr Shannon Moreau who, having acquired a one bedroom apartment in Heaton in September 2003. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical premises in Heaton with 100 year plus lease were worth £243,000. The average amount of ground rent was £65 invoiced monthly. The lease finished on 18 May 2089. Considering the 63 years outstanding we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including expenses.

Heaton case:

In 2014 we were called by Mrs F Carter who, having took over the lease of a ground floor apartment in Heaton in August 2005. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical premises in Heaton with 100 year plus lease were valued about £181,600. The average amount of ground rent was £55 collected per annum. The lease elapsed in 2078. Having 52 years remaining we approximated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus legals.