Why you should commence your Monkseaton lease extension

Main reasons to start your Monkseaton lease extension today:

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

The market value of a leasehold property in Monkseaton is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed prior to the eighty year threshold. Statute enables Monkseaton qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold residencies in Monkseaton with more than one hundred years unexpired 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.

Lending institutions may not issue a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to become nervous at around 75 years. This may cause difficulties once you wish to market or remortgage your property as it will be effectively unmortgageable. You may have no imminent intention to sell but when you do your purchaser will need to wait 2 years before they can commence the legal procedures for a lease extension.

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

Regardless of whether you are a tenant or a landlord in Monkseaton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Monkseaton valuers.

Monkseaton Lease Extension Example Cases:

Sian, Monkseaton, Tyne And Wear,

Off the back of lengthy discussions with the landlord of her first floor flat in Monkseaton, Sian commenced the lease extension process as the 80 year mark was fast approaching. The transaction was finalised in April 2015. The landlord’s costs were negotiated to below 550 pounds.

Monkseaton case:

In 2014 we were called by Mr and Mrs. V Johnson who, having acquired a studio apartment in Monkseaton in June 2007. The dilemma was if we could estimate the price could be to extend the lease by a further 90 years. Comparable residencies in Monkseaton with a long lease were worth £264,000. The mid-range ground rent payable was £60 collected annually. The lease expiry date was on 17 February 2079. Having 53 years left we approximated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 plus legals.

Monkseaton case:

Last Winter we were approach by Mr and Mrs. B Torres , who owned a recently refurbished apartment in Monkseaton in July 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Identical homes in Monkseaton with a long lease were worth £225,400. The mid-range ground rent payable was £45 collected yearly. The lease lapsed in 2090. Considering the 64 years remaining we estimated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 exclusive of expenses.