Top reasons for North Shields lease extension

Why you should start your North Shields lease extension today:

Increase your lease and increase your North Shields property value

North Shields leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most North Shields tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in North Shields you really ought to investigate if your lease has between 70 and 90 years left. There are good reasons why a North Shields leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is actioned without delay

An extended lease has roughly the same value as a freehold

Leasehold residencies in North Shields with over 100 years unexpired on the lease are sometimes regarded as a ‘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 service charges merit it.

Lenders may not loan monies on a short lease

Most high street banks are making their criteria more stringent and a meaningful number now expect flats to have at least sixty if not seventy years remaining once the mortgage has expired. Considering plenty of flats in North Shields were built in the fifties, sixties and seventies this means many now require lease extensions if they if they are to be mortgageable.

What makes us experts in North Shields lease extensions?

Regardless of whether you are a tenant or a freeholder in North Shields,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 in-depth market knowledge and the close ties they enjoy with North Shields valuers.

North Shields Lease Extension Case Studies:

Andrew, North Shields, Tyne And Wear,

Andrew owned a 2 bedroom flat in North Shields on the market with a lease of fraction over sixty years unexpired. Andrew informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Andrew to invoke his statutory right. Andrew procured expert advice and secured an acceptable resolution without going to tribunal and sell the flat.

North Shields case:

In 2012 we were approached by Dr Zachary Morgan who, having completed a newly refurbished apartment in North Shields in September 2006. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative properties in North Shields with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease lapsed in 2096. Taking into account 70 years outstanding we estimated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 exclusive of costs.

North Shields case:

Last Christmas we were called by Dr Kian Bell , who took over the lease of a newly refurbished apartment in North Shields in March 2001. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative flats in North Shields with a long lease were in the region of £246,800. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish on 9 May 2076. Given that there were 50 years outstanding we calculated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 exclusive of fees.