Main reasons to start your Newburn lease extension

Main reasons to commence your Newburn lease extension today:

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

The re-sale value of a leasehold property in Newburn depends on how many years the lease has remaining. If it is close to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. Ideally one should start the lease extension process when a lease still has 82 years to run so that a lease extension can be addressed prior to the eighty year cut off point. Statute enables Newburn qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease 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 approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Lending institutions will not issue a mortgage with a short lease

Almost all banks and building societies will not grant a mortgage on a lease with under 70 years left to run - although this varies between mortgage companies. A buyer will undoubtedly encounter difficulties to obtain a mortgage and this could result in your Newburn property becoming difficult to dispose of or remortgage.

Why use us for your lease extension in Newburn?

The conveyancing solicitors that we work with undertake Newburn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Newburn Lease Extension Example Cases:

Kayleigh, Newburn, Tyne And Wear,

Off the back of lengthy negotiations with the freeholder of her basement apartment in Newburn, Kayleigh commenced the lease extension process as the 80 year mark was rapidly coming. The transaction was concluded in November 2011. The freeholder’s charges were kept to an absolute minimum.

Newburn case:

In 2011 we were phoned by Mr and Mrs. E David who, having took over the lease of a studio flat in Newburn in June 2010. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Comparative flats in Newburn with 100 year plus lease were worth £290,000. The average ground rent payable was £45 invoiced annually. The lease came to a finish on 15 October 2099. Given that there were 73 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.

Newburn case:

In 2013 we were called by Mrs W Wilson who, having bought a one bedroom flat in Newburn in November 2007. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable residencies in Newburn with an extended lease were worth £235,600. The mid-range amount of ground rent was £60 billed annually. The lease finished on 11 October 2088. Taking into account 62 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including costs.