Top reasons for Newburn lease extension

Top reasons for lease extension now:

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

The value of Newburn leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the unexpired lease term is less than eighty years

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

Leasehold residencies in Newburn with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions may decide not to loan monies with a short lease

Almost all banks and building societies will not grant a mortgage on a lease with under seventy years remaining - although this varies between mortgage companies. A buyer will likely find it difficult in obtaining a mortgage and this could result in your Newburn property being difficult to dispose of or remortgage.

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

Engaging our service will provide you increased control over the value of your Newburn leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Newburn Lease Extension Example Cases:

Chelsea, Newburn, Tyne And Wear,

Trailing protracted discussions with the freeholder of her purpose-built flat in Newburn, Chelsea started the lease extension process as the 80 year threshold was swiftly nearing. The transaction completed in April 2010. The landlord’s fees were kept to an absolute minimum.

Newburn case:

In 2013 we were approached by Mr and Mrs. H Hill who, having purchased a garden flat in Newburn in November 2001. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparable homes in Newburn with a long lease were worth £191,400. The average amount of ground rent was £55 invoiced monthly. The lease expired on 7 June 2080. Considering the 54 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of costs.

Newburn case:

Last Summer we were contacted by Dr Eleanor Torres , who was assigned a lease of a first floor flat in Newburn in February 2004. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar properties in Newburn with an extended lease were worth £295,000. The average ground rent payable was £45 invoiced per annum. The lease came to a finish in 2100. Given that there were 74 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.