Why you should start your South Hylton lease extension

Why you should commence your South Hylton lease extension today:

A South Hylton leasehold property depreciates with the years remaining on the lease.

With a domestic leasehold property in South Hylton, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years left. Residents in South Hylton with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has below eighty years left, under the relevant Act the landlord can calculate and charge a larger premium, based on a technical calculation, known as “marriage value” which is due.

South Hylton property with a lease extension has roughly the same value as a freehold

Leasehold properties in South Hylton with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.

Lending institutions may not issue a mortgage with a short lease

The propensity since 2008 has been for banks to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past banks would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in South Hylton lease extensions?

Irrespective of whether you are a tenant or a landlord in South Hylton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with South Hylton valuers.

South Hylton Lease Extension Case Studies:

Maisie, South Hylton, Tyne And Wear,

After protracted correspondence with the freeholder of her ground floor flat in South Hylton, Maisie commenced the lease extension process just as her lease was nearing the crucial eighty-year mark. The transaction completed in February 2007. The landlord’s costs were kept to an absolute minimum.

South Hylton case:

Mrs Sophia Peterson completed a garden apartment in South Hylton in November 2001. The question was if we could approximate the price could be for a ninety year extension to my lease. Identical residencies in South Hylton with a long lease were worth £237,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease terminated on 2 March 2093. Taking into account 67 years outstanding we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 not including costs.

South Hylton case:

In 2012 we were approached by Mr J Turner who, having purchased a ground floor apartment in South Hylton in October 2002. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Identical residencies in South Hylton with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £55 invoiced annually. The lease came to a finish on 15 April 2104. Having 78 years outstanding we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of costs.