Main reasons to commence your Newark lease extension

Main reasons to start your Newark lease extension today:

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

The re-sale value of a leasehold property in Newark depends on how long the lease has left to run. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that a lease extension can be finalised well before the eighty year cut off point. Statute enables Newark qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

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

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies may decide not to issue a mortgage on a short lease

The definition of a short lease varies by mortgage company, yet mortgage lenders start to get concerned at around 75 years. This will cause difficulties as and when you need to sell or remortgage your property as it will be practically unmortgageable. Even though you might have no immediate plan to sell but when you do your purchaser will need to hold off for a couple of years before they can exercise the right to a a lease extension.

What makes us experts in Newark lease extensions?

Retaining our service gives you enhanced control over the value of your Newark leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Newark Lease Extension Case Summaries:

Theo, Newark, Nottinghamshire

Last Winter Theo, came seriously near to the eighty-year mark with the lease on his basement apartment in Newark. Having purchased his property twenty years ago, the length of the lease was of little significance. As luck would have it, he recognised he needed to take steps soon on a lease extension. Theo extended the lease just ahead of time last May. Theo and the landlord ultimately settled on sum of £6,000 . If the lease had dropped below eighty years, the price would have become more costly by at least £1,125.

Newark case:

In 2014 we were contacted by Dr D Bailey who, having purchased a basement flat in Newark in October 2010. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Comparative premises in Newark with 100 year plus lease were valued about £210,600. The mid-range amount of ground rent was £45 collected monthly. The lease finished in 2088. Considering the 62 years as a residual term we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including professional charges.

Newark case:

In 2014 we were e-mailed by Ms R Wilson who, having owned a purpose-built flat in Newark in October 2003. We are asked if we could estimate the price would be to extend the lease by an additional years. Similar flats in Newark with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £50 collected annually. The lease finished in 2099. Given that there were 73 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.