Top reasons for Longbenton lease extension

Why you should start your Longbenton lease extension today:

Increase your lease and increase your Longbenton property value

With a long leasehold premises in Longbenton, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are less than 80 years left. Leasehold owners in Longbenton with a lease nearing 81 years remaining should seriously think of extending it without delay. Once a lease has fewer than eighty years left, under the current Act the freeholder can calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.

Longbenton property with a lease extension is almost the same value as a freehold

Leasehold premises in Longbenton with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders may decide not to lend with a short lease

Banks and building societies are inclined not lend on short residential leases. You most probably encounter difficulties where you want to sell your flat in Longbenton if the unexpired term of your lease is under the criteria set by the majority of banks and building societies. Different lenders have different criteria but in the main theyrequire an unexpired term of at least 65 years.

What makes us experts in Longbenton lease extensions?

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

Longbenton Lease Extension Case Studies:

Logan, Longbenton, Tyne And Wear

Last Autumn Logan, started to get close to the eighty-year mark with the lease on his leasehold apartment in Longbenton. In buying his property twenty years previously, the lease term was of no importance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Logan extended the lease just in the nick of time in March. Logan and the freeholder eventually settled on a premium of £6,000 . If the lease had fallen to less than eighty years, the sum would have increased by at least £850.

Longbenton case:

In 2012 we were phoned by Mr and Mrs. P Scott who, having moved into a studio apartment in Longbenton in April 1995. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable homes in Longbenton with a long lease were worth £223,400. The mid-range amount of ground rent was £60 collected every twelve months. The lease ran out in 2085. Having 59 years remaining we estimated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of legals.

Longbenton case:

Dr Callum Garcia took over the lease of a one bedroom apartment in Longbenton in October 1999. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar homes in Longbenton with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 billed quarterly. The lease came to a finish on 18 July 2105. Given that there were 79 years unexpired we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.