Top reasons for Springwell lease extension

Main reasons to start your Springwell lease extension today:

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

Springwell leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Springwell residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Springwell you really ought to investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Lending institutions may not lend on a short lease

Banks and Building Societies have set criteria when loaning monies charged on leasehold property. Many will simply refrain from lending at all once the remaining lease term falls below a specified unexpired lease term. Many Mortgage lenders will not consider property with a remaining below seventy years suitable security. As well as impacting your ability to sell, it is also relevant if you are wanting to remortgage your Springwell property.

Why use us for your lease extension in Springwell?

Irrespective of whether you are a tenant or a freeholder in Springwell,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 experience and the close ties they enjoy with Springwell valuers.

Springwell Lease Extension Example Cases:

Hunter, Springwell, Tyne And Wear

During the course of the last few months Hunter, started to get near to the 80-year mark with the lease on his one bedroom apartment in Springwell. In buying his property twenty years previously, the lease term was of no significance. Fortunately, he became aware that he would imminently be paying an inflated amount for a lease extension. Hunter extended the lease just in the nick of time last January. Hunter and the freeholder via the managing agents subsequently settled on an amount of £6,000 . If he had missed the deadline, the figure would have escalated by a minimum £1,075.

Springwell case:

In 2010 we were called by Mrs Elizabeth Campbell who, having owned a purpose-built apartment in Springwell in July 2007. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable residencies in Springwell with an extended lease were in the region of £290,000. The average ground rent payable was £60 billed monthly. The lease ended in 2106. Having 80 years remaining we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.

Springwell case:

In 2011 we were e-mailed by Mr L Richardson who, having acquired a one bedroom apartment in Springwell in January 2000. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative flats in Springwell with an extended lease were in the region of £200,800. The mid-range ground rent payable was £65 billed per annum. The lease elapsed on 26 May 2086. Taking into account 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of costs.