Why you should start your Low Fell lease extension

Why you should start your Low Fell lease extension today:

A Low Fell leasehold property depreciates with the years remaining on the lease.

Low Fell leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Low Fell will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and procedures to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.

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

It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.

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

Banks and Building Societies have specific criteria when loaning monies charged on leasehold property. Some will simply refrain from lending at all once the remaining lease term slips lower than a specified unexpired lease term. Many Lending institutions will not consider property with a remaining below 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant where you are seeking to refinance your Low Fell property.

What makes us experts in Low Fell lease extensions?

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

Low Fell Lease Extension Case Studies:

Jayden, Low Fell, Tyne And Wear,

Jayden owned a high value apartment in Low Fell being sold with a lease of a few days over 61 years outstanding. Jayden informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Jayden to exercise his statutory right. Jayden procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the property.

Low Fell case:

Mrs Jessica Scott took over the lease of a one bedroom apartment in Low Fell in November 2002. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable properties in Low Fell with 100 year plus lease were valued around £280,000. The average amount of ground rent was £45 invoiced per annum. The lease came to a finish on 17 November 2097. Having 71 years unexpired we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.

Low Fell case:

Last Christmas we were approach by Mr and Mrs. A Laurent , who took over the lease of a garden flat in Low Fell in January 1996. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative properties in Low Fell with a long lease were valued about £225,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease ended in 2086. Having 60 years left we calculated the premium to the freeholder for the lease extension to be within £25,700 and £29,600 exclusive of expenses.