Why you should start your Ponteland lease extension

Main reasons to commence your Ponteland lease extension today:

Increase your lease and increase your Ponteland property value

Ponteland leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Ponteland enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Ponteland you would be well advised to check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Ponteland leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay

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

Leasehold premises in Ponteland with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may not grant a mortgage on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Ponteland lease extensions?

Engaging our service will provide you increased control over the value of your Ponteland leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Ponteland Lease Extension Case Summaries:

Jason, Ponteland, Northumberland

Two years ago Jason, started to get close to the eighty-year mark with the lease on his one bedroom apartment in Ponteland. In buying his flat two decades ago, the lease term was of little concern. Luckily, he realised he would imminently be paying an inflated amount for Extending the lease. Jason arranged for a lease extension at the eleventh hour in July. Jason and the freeholder in the end agreed on a premium of £5,500 . If the lease had dipped below eighty years, the amount would have gone up by at least £1,125.

Ponteland case:

Last year we were phoned by Mrs Amber Campbell , who completed a basement apartment in Ponteland in August 2001. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical flats in Ponteland with an extended lease were worth £267,600. The mid-range ground rent payable was £65 invoiced every twelve months. The lease concluded on 12 May 2093. Considering the 67 years left we calculated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of professional charges.

Ponteland case:

Dr V Ricardo bought a garden apartment in Ponteland in March 2012. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable properties in Ponteland with 100 year plus lease were worth £206,200. The mid-range ground rent payable was £60 invoiced monthly. The lease ended in 2082. Given that there were 56 years outstanding we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including fees.