Why you should start your Port Clarence lease extension

Why you should commence your Port Clarence lease extension today:

Increase your lease and increase your Port Clarence property value

Chances are that if you own a flat in Port Clarence you actually own a long leasehold interest over your property

Port Clarence property with a lease extension is almost the same value as a freehold

Leasehold properties in Port Clarence with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Lenders may decide not to lend on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past banks would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

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

The lawyers that we work with handle Port Clarence 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 lawyer we work with provide it.

Port Clarence Lease Extension Example Cases:

Noah, Port Clarence, Stockton on Tees

Last year Noah, came very near to the eighty-year threshold with the lease on his ground floor flat in Port Clarence. In buying his property 18 years previously, the length of the lease was of no significance. Fortunately, he recognised he would soon be paying way over the odds for Extending the lease. Noah arranged for a lease extension just in the nick of time in January. Noah and the landlord who owned the flat above ultimately settled on the final figure of £5,000 . If the lease had gone below eighty years, the figure would have gone up by at least £1,050.

Port Clarence case:

In 2012 we were phoned by Mr and Mrs. K Cox who, having took over the lease of a recently refurbished flat in Port Clarence in May 2006. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Comparative premises in Port Clarence with a long lease were in the region of £181,600. The average amount of ground rent was £55 collected quarterly. The lease ran out in 2078. Taking into account 52 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including expenses.

Port Clarence case:

In 2009 we were contacted by Ms Aimee Lambert who, having purchased a first floor apartment in Port Clarence in February 1997. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparable premises in Port Clarence with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £45 collected yearly. The lease came to a finish in 2098. Considering the 72 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of professional charges.