Top reasons for Shotley Bridge lease extension

Top reasons for lease extension now:

Increase your lease and increase your Shotley Bridge property value

The re-sale value of a leasehold property in Shotley Bridge depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension before buying. Ideally one should start the lease extension process when a lease still has 82 years remaining so that a lease extension can be addressed in advance of the 80 year mark. Leasehold Reform legislation entitles Shotley Bridge qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost 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 equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Mortgage lenders may not finance a property with a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to become nervous at around 75 years. This will cause difficulties as and when you come to market or refinance your flat as it will be effectively unmortgageable. You may have no immediate desire to sell but when you do your buyer must hold off for 2 years before being able to exercise the right to a an extension to the lease.

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

Regardless of whether you are a tenant or a landlord in Shotley Bridge,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shotley Bridge valuers.

Shotley Bridge Lease Extension Example Cases:

Eli, Shotley Bridge, Northumberland,

Eli was the the leasehold owner of a high value apartment in Shotley Bridge on the market with a lease of fraction over 59 years unexpired. Eli informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Eli to invoke his statutory right. Eli obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.

Shotley Bridge case:

Mr and Mrs. V Miller bought a one bedroom apartment in Shotley Bridge in April 2011. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar flats in Shotley Bridge with an extended lease were valued about £235,200. The mid-range amount of ground rent was £45 billed annually. The lease ended in 2092. Given that there were 66 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.

Shotley Bridge case:

In 2012 we were e-mailed by Mr Ibrahim Bennett who, having acquired a one bedroom apartment in Shotley Bridge in May 2000. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparative properties in Shotley Bridge with an extended lease were valued around £275,000. The mid-range ground rent payable was £55 collected quarterly. The lease ended in 2103. Considering the 77 years left we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.