Main reasons to commence your Longbenton lease extension

Why you should commence your Longbenton lease extension today:

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

The only way is down when it comes to Longbenton lease terms. Longbenton leaseholds that have a residual term lower than 80 years will drop in market price even faster, and the cost of extending your lease will rise.

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

Leasehold premises in Longbenton with over 100 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies will not loan monies with a short lease

The propensity since 2008 has been for banks to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has meant the unexpired lease term required by banks has increased. In the past banks were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Longbenton?

Regardless 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 Example Cases:

Nathan, Longbenton, Tyne And Wear,

Nathan was the the leasehold proprietor of a high value apartment in Longbenton on the market with a lease of a few days over 72 years remaining. Nathan informally spoke with his landlord being a well known local-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 subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Nathan to invoke his statutory right. Nathan procured expert advice and secured satisfactory deal informally and sell the flat.

Longbenton case:

Mr E Martin was assigned a lease of a garden apartment in Longbenton in September 1995. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Similar premises in Longbenton with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 collected per annum. The lease ended in 2097. Having 71 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.

Longbenton case:

Ms S Garcia purchased a garden apartment in Longbenton in July 1997. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Comparable premises in Longbenton with an extended lease were worth £230,800. The mid-range ground rent payable was £60 billed annually. The lease lapsed in 2086. Given that there were 60 years left we approximated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 exclusive of costs.