Why you should start your Newton Aycliffe lease extension

Top reasons for lease extension now:

Increase your lease and increase your Newton Aycliffe property value

For anyone whose Newton Aycliffe home is held on a long lease, our message is clear – if nothing is done, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.

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

Leasehold properties in Newton Aycliffe with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions may decide not to issue a mortgage with a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

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

Irrespective of whether you are a tenant or a freeholder in Newton Aycliffe,the lease extension lawyers 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 Newton Aycliffe valuers.

Newton Aycliffe Lease Extension Case Summaries:

Caitlin, Newton Aycliffe, County Durham,

Trailing lengthy correspondence with the landlord of her ground floor flat in Newton Aycliffe, Caitlin started the lease extension process as the eighty year mark was swiftly nearing. The lease extension was concluded in August 2009. The freeholder’s costs were negotiated to under 500 GBP.

Newton Aycliffe case:

Ms Morgan Hernández owned a purpose-built apartment in Newton Aycliffe in May 2007. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Similar homes in Newton Aycliffe with a long lease were valued around £260,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease concluded on 3 October 2092. Given that there were 66 years outstanding we calculated the premium to the landlord for the lease extension to be within £15,200 and £17,600 plus costs.

Newton Aycliffe case:

Ms Sian Stewart moved into a first floor apartment in Newton Aycliffe in November 1995. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar flats in Newton Aycliffe with an extended lease were worth £198,800. The average amount of ground rent was £55 invoiced monthly. The lease finished in 2081. Considering the 55 years left we estimated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 not including expenses.