Why you should commence your Staindrop lease extension

Why you should start your Staindrop lease extension today:

A Staindrop leasehold property depreciates with the years remaining on the lease.

It’s a harsh certainty that a Staindrop residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Staindrop property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Staindrop will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.

Staindrop property with a lease extension is almost the same value as a freehold

Leasehold properties in Staindrop with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Lenders may decide not to loan monies with a short lease

Nearly all banks and building societies will not lend on a lease with under 70 years unexpired - although this varies between mortgage companies. A purchaser will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your Staindrop property being difficult to dispose of or refinance.

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

Engaging our service gives you better control over the value of your Staindrop 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.

Staindrop Lease Extension Case Studies:

Victoria, Staindrop, County Durham,

Off the back of protracted negotiations with the landlord of her ground floor flat in Staindrop, Victoria initiated the lease extension process as the eighty year threshold was fast advancing. The transaction completed in May 2010. The freeholder’s costs were restricted to slightly above 650 GBP.

Staindrop case:

Mr and Mrs. A Roberts bought a basement apartment in Staindrop in September 1999. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Identical residencies in Staindrop with 100 year plus lease were valued about £290,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease lapsed in 2098. Given that there were 72 years left we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of professional charges.

Staindrop case:

Last Christmas we were e-mailed by Dr U Gómez , who purchased a first floor apartment in Staindrop in July 1995. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Staindrop with an extended lease were in the region of £233,200. The average amount of ground rent was £60 billed every twelve months. The lease end date was in 2087. Given that there were 61 years left we estimated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including legals.