Main reasons to start your North Shields and Tynemouth lease extension

Why you should start your North Shields and Tynemouth lease extension today:

A North Shields and Tynemouth leasehold property depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in North Shields and Tynemouth. Inevitably, the period of lease left shortens over time. This may pass by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in North Shields and Tynemouth have the right to extend the lease for a further 90 years under Leasehold Reform legislation. Please give careful attention before delaying your North Shields and Tynemouth lease extension. Putting off that expense now likely increases the price you will eventually incur to extend your lease

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may decide not to finance a property with a short lease

Nearly all banks and building societies insist on a lengthy amount of time left on a leasehold residence before they will consider it as adequate security. Regardless of whether you require a mortgage, you should be conscious that it is reasonable to assume that someone intending to acquire your property in the future might well do, so in the event that they can't obtain a mortgage, then the market price of your property will likely be adversely impacted. Since 2008 the majority of banks and building societies have increased the required minimum lease length that they are prepared to lend on

Why use us for your lease extension in North Shields and Tynemouth?

The conveyancing solicitors that we work with undertake North Shields and Tynemouth 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.

North Shields and Tynemouth Lease Extension Example Cases:

Samuel, North Shields and Tynemouth, Tyne And Wear,

Samuel owned a high value apartment in North Shields and Tynemouth on the market with a lease of a few days over fifty eight years left. Samuel on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert legal guidance and secured satisfactory resolution without going to tribunal and sell the property.

North Shields and Tynemouth case:

Last month we were approach by Mrs O Edwards , who owned a purpose-built apartment in North Shields and Tynemouth in January 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical flats in North Shields and Tynemouth with a long lease were valued around £181,600. The mid-range ground rent payable was £55 collected monthly. The lease finished in 2078. Considering the 52 years as a residual term we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus expenses.

North Shields and Tynemouth case:

Last Summer we were e-mailed by Mr Samuel Gómez , who was assigned a lease of a one bedroom apartment in North Shields and Tynemouth in March 2001. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical flats in North Shields and Tynemouth with a long lease were valued around £285,000. The average ground rent payable was £45 invoiced yearly. The lease terminated in 2098. Given that there were 72 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.