Why you should commence your Shotley Bridge lease extension

Why you should commence your Shotley Bridge lease extension today:

A Shotley Bridge leasehold property depreciates with the years remaining on the lease.

The value of Shotley Bridge leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than eighty years

An extended lease is almost the same value as a freehold

Leasehold premises in Shotley Bridge with over 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lending institutions may not issue a mortgage on a short lease

Many banks and building societies require a lengthy amount of time remaining on any leasehold residence before they will contemplate lending on it. Even if you don't need a mortgage, you should keep in mind that it is reasonable to assume that someone wanting to acquire your property in the future might well do, so if they are not able to get a mortgage, then the financial worth of your property could suffer. In the last decade most banks and building societies have increased the required minimum lease length that they are willing to lend on

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

Engaging our service will provide you increased control over the value of your Shotley Bridge leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Shotley Bridge Lease Extension Example Cases:

Lydia, Shotley Bridge, Northumberland,

Trailing lengthy correspondence with the freeholder of her basement apartment in Shotley Bridge, Lydia started the lease extension process as the 80 year mark was rapidly nearing. The lease extension was finalised in November 2009. The landlord’s costs were negotiated to less than 550 GBP.

Shotley Bridge case:

Last month we were e-mailed by Mr and Mrs. T Jackson , who was assigned a lease of a studio apartment in Shotley Bridge in November 2012. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Shotley Bridge with a long lease were worth £166,400. The average amount of ground rent was £60 collected annually. The lease came to a finish on 23 August 2080. Considering the 54 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of expenses.

Shotley Bridge case:

Last Christmas we were contacted by Mr and Mrs. C White , who took over the lease of a purpose-built apartment in Shotley Bridge in October 2002. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in Shotley Bridge with an extended lease were worth £227,800. The mid-range ground rent payable was £45 invoiced yearly. The lease ran out on 28 June 2091. Taking into account 65 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.