Top reasons for Prudhoe lease extension

Main reasons to start your Prudhoe lease extension today:

A Prudhoe lease depreciates with the years remaining on the lease.

Prudhoe 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 your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Prudhoe residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Prudhoe you should check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

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

It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.

Lending institutions will not lend on a short lease

Many banks and building societies will be unwilling to grant a mortgage on a lease with under 70 years remaining - although this varies between mortgage companies. A purchaser will likely find it difficult in obtaining a mortgage and this could result in your Prudhoe property being difficult to dispose of or refinance.

What makes us experts in Prudhoe lease extensions?

Retaining our service gives you increased control over the value of your Prudhoe leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Prudhoe Lease Extension Case Studies:

Nicole, Prudhoe, Northumberland,

Following unsuccessful discussions with the landlord of her first floor apartment in Prudhoe, Nicole initiated the lease extension process as the eighty year deadline was rapidly nearing. The legal work completed in April 2006. The freeholder’s costs were kept to an absolute minimum.

Prudhoe case:

Last Christmas we were approach by Mrs Alisha Lambert , who bought a basement apartment in Prudhoe in January 2001. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative properties in Prudhoe with an extended lease were in the region of £168,800. The mid-range amount of ground rent was £60 collected per annum. The lease came to a finish in 2081. Taking into account 55 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus professional charges.

Prudhoe case:

In 2009 we were e-mailed by Dr R Bailey who, having acquired a garden flat in Prudhoe in January 1998. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Similar homes in Prudhoe with a long lease were valued about £235,200. The average amount of ground rent was £45 collected monthly. The lease terminated on 11 January 2092. Given that there were 66 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.