Top reasons for Murton lease extension

Why you should commence your Murton lease extension today:

Increase your lease and increase your Murton property value

Murton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Murton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Murton you must see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

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

Leasehold residencies in Murton with over 100 years unexpired on the lease are sometimes 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 to be gained by buying the freehold unless savings on ground rent and estate charges merit it.

Lenders may decide not to lend with a short lease

Most high street banks are making their criteria more stringent and many now require flats to have at least 60 if not 70 years remaining once the mortgage has expired. Given that many flats in Murton were built in the fifties, sixties and seventies this means many now require lease extensions if they wish to obtain a mortgage.

Why use us for your lease extension in Murton?

Regardless of whether you are a tenant or a landlord in Murton,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 Murton valuers.

Murton Lease Extension Case Studies:

Nathan, Murton, County Durham,

Nathan owned a studio flat in Murton being sold with a lease of a few days over 61 years left. Nathan informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Nathan to exercise his statutory right. Nathan procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.

Murton case:

In 2013 we were e-mailed by Ms L Harris who, having was assigned a lease of a newly refurbished flat in Murton in September 1998. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Murton with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 collected per annum. The lease elapsed in 2104. Having 78 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.

Murton case:

In 2013 we were approached by Mr P Howard who, having moved into a basement flat in Murton in April 1995. We are asked if we could approximate the price could be to extend the lease by 90 years. Comparative properties in Murton with a long lease were worth £267,600. The mid-range ground rent payable was £65 invoiced yearly. The lease finished in 2093. Having 67 years remaining we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of professional charges.