Why you should start your Northallerton lease extension

Main reasons to start your Northallerton lease extension today:

A Northallerton leasehold property depreciates with the years remaining on the lease.

Northallerton 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 becomes more expensive. Legislation has been in place for sometime now which permits qualifying Northallerton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Northallerton you really ought to see if your lease has between 70 and ninety years remaining. There are good reasons why a Northallerton leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay

Northallerton property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.

Lending institutions will not issue a mortgage with a short lease

Many banks and building societies will be unwilling to lend on a lease with under 70 years remaining - although this varies from lender to lender. A buyer will likely encounter difficulties to obtain a mortgage and this could result in your Northallerton property being difficult to dispose of or refinance.

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

Irrespective of whether you are a tenant or a freeholder in Northallerton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Northallerton valuers.

Northallerton Lease Extension Case Summaries:

Kai, Northallerton, North Yorkshire

Twenty four months ago Kai, started to get close to the eighty-year threshold with the lease on his basement flat in Northallerton. In buying his flat two decades ago, the unexpired term was of no significance. Luckily, he noticed he needed to take action soon on Extending the lease. Kai was able to extend his lease just under the wire in June. Kai and the freeholder subsequently settled on sum of £5,000 . If he not met the deadline, the premium would have escalated by at least £1,125.

Northallerton case:

Dr J Watson owned a studio apartment in Northallerton in August 2004. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative homes in Northallerton with a long lease were valued around £223,400. The average ground rent payable was £60 billed annually. The lease terminated on 2 November 2085. Considering the 59 years outstanding we approximated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 not including legals.

Northallerton case:

Mrs Ellie Ramírez took over the lease of a one bedroom flat in Northallerton in September 2011. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Similar flats in Northallerton with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 collected every twelve months. The lease finished in 2105. Having 79 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.