Why you should start your Hexham lease extension

Top reasons for lease extension now:

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

The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Hexham may extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Hexham lease extension. Putting off that expense today simply escalates the amount you will ultimately have to pay to extend the lease.

An extended lease is almost the same value as a freehold

Leasehold residencies in Hexham with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions may decide not to issue a mortgage with a short lease

Banks and building societies are making their criteria more stringent and a meaningful number now want flats to have at least 60 if not 70 years remaining once the mortgage has expired. Given that plenty of flats in Hexham were created in the fifties, sixties and seventies this means many now require lease extensions if they wish to get a mortgage.

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

Regardless of whether you are a tenant or a landlord in Hexham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hexham valuers.

Hexham Lease Extension Example Cases:

Alfie, Hexham, Northumberland

In 2014 Alfie, came dangerously close to the 80-year threshold with the lease on his first floor apartment in Hexham. Having bought his property twenty years previously, the lease term was of little relevance. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Alfie was able to extend his lease at the eleventh hour in June. Alfie and the landlord eventually settled on an amount of £5,000 . If he not met the deadline, the price would have escalated by at least £975.

Hexham case:

In 2009 we were e-mailed by Mr and Mrs. E Simon who, having bought a one bedroom apartment in Hexham in October 1997. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparative properties in Hexham with 100 year plus lease were valued around £200,000. The mid-range amount of ground rent was £50 collected annually. The lease terminated on 3 June 2103. Having 77 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.

Hexham case:

Dr L Carter took over the lease of a basement apartment in Hexham in June 2004. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical homes in Hexham with an extended lease were worth £265,200. The mid-range amount of ground rent was £65 collected quarterly. The lease ran out on 2 October 2092. Given that there were 66 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 plus costs.