Why you should start your Prudhoe lease extension

Why you should commence your Prudhoe lease extension today:

Increase your lease and increase your Prudhoe property value

On the balance of probabilities where you own a flat in Prudhoe you actually own a long leasehold interest over your property

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may not lend with a short lease

The trend since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

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

Irrespective of whether you are a tenant or a freeholder in Prudhoe,the lease extension solicitors 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 Prudhoe valuers.

Prudhoe Lease Extension Example Cases:

Chloe, Prudhoe, Northumberland,

Following protracted discussions with the landlord of her one bedroom apartment in Prudhoe, Chloe started the lease extension process as the eighty year deadline was swiftly nearing. The lease extension was finalised in June 2006. The freeholder’s costs were restricted to below 500 GBP.

Prudhoe case:

In 2014 we were contacted by Mr and Mrs. F Ricardo who, having owned a garden apartment in Prudhoe in November 2004. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparative homes in Prudhoe with an extended lease were valued around £237,600. The mid-range amount of ground rent was £45 collected annually. The lease came to a finish on 3 June 2093. Considering the 67 years remaining we approximated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 plus fees.

Prudhoe case:

Mrs L Bailey bought a one bedroom flat in Prudhoe in August 1996. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparable homes in Prudhoe with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease finished in 2104. Considering the 78 years left we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.