Why you should commence your Newton Aycliffe lease extension

Main reasons to start your Newton Aycliffe lease extension today:

A Newton Aycliffe leasehold property depreciates with the years remaining on the lease.

Newton Aycliffe 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 your lease becomes more expensive. Most owners of residential leasehold property in Newton Aycliffe enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Newton Aycliffe you should see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold premises in Newton Aycliffe with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions may not lend with a short lease

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

The lawyers that we work with undertake Newton Aycliffe 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.

Newton Aycliffe Lease Extension Example Cases:

Sophia, Newton Aycliffe, County Durham,

In the wake of eight months of unsuccessful negotiations with the landlord of her ground floor flat in Newton Aycliffe, Sophia initiated the lease extension process just as her lease was coming close to the critical 80-year deadline. The lease extension was finalised in August 2009. The freeholder’s costs were negotiated to a tad over 500 GBP.

Newton Aycliffe case:

In 2009 we were e-mailed by Mr and Mrs. G Brooks who, having owned a basement apartment in Newton Aycliffe in November 2011. We are asked if we could estimate the price would be to prolong the lease by an additional years. Comparable residencies in Newton Aycliffe with an extended lease were worth £295,000. The average ground rent payable was £45 invoiced yearly. The lease ran out in 2100. Having 74 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.

Newton Aycliffe case:

Mrs Jordan Ricardo was assigned a lease of a studio apartment in Newton Aycliffe in May 2005. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Identical homes in Newton Aycliffe with 100 year plus lease were in the region of £243,000. The average ground rent payable was £65 billed monthly. The lease ran out in 2089. Taking into account 63 years as a residual term we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus fees.