Why you should commence your Newark on Trent lease extension

Top reasons for lease extension now:

A Newark on Trent lease depreciates with the years remaining on the lease.

Newark on Trent 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 the lease becomes more expensive. The majority of owners of residential leasehold property in Newark on Trent enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Newark on Trent you must investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Lending institutions will not loan monies on a short lease

Almost all mortgage companies will be unwilling to lend on a lease with under seventy years left to run - although this varies from lender to lender. A purchaser will likely find it difficult in obtaining a mortgage and this will result in your Newark on Trent property becoming difficult to dispose of or to obtain finance on.

What makes us experts in Newark on Trent lease extensions?

Irrespective of whether you are a tenant or a landlord in Newark on Trent,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 in-depth market knowledge and the close ties they enjoy with Newark on Trent valuers.

Newark on Trent Lease Extension Case Summaries:

Chloe, Newark on Trent, Nottinghamshire,

Subsequent to unsuccessful negotiations with the landlord of her garden apartment in Newark on Trent, Chloe initiated the lease extension process as the 80 year mark was rapidly coming. The transaction was concluded in July 2006. The landlord’s fees were kept to an absolute minimum.

Newark on Trent case:

Mr Dylan Campbell completed a newly refurbished flat in Newark on Trent in February 2003. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar homes in Newark on Trent with 100 year plus lease were valued around £218,000. The mid-range ground rent payable was £45 collected monthly. The lease expired in 2089. Considering the 63 years unexpired we approximated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of costs.

Newark on Trent case:

In 2011 we were approached by Mr and Mrs. S Girard who, having moved into a one bedroom flat in Newark on Trent in March 2004. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparable residencies in Newark on Trent with an extended lease were valued around £265,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease finished in 2100. Considering the 74 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.