Why you should start your Whitley Bay lease extension

Main reasons to start your Whitley Bay lease extension today:

A Whitley Bay leasehold property depreciates with the years remaining on the lease.

As the the remaining lease term of a Whitley Bay domestic lease diminished so does its value and therefore the value of your property. If the residual term has, over 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Whitley Bay will qualify for this right; that being said a conveyancing solicitor should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

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

Leasehold residencies in Whitley Bay with in excess of 100 years left 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lenders will not lend on a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to get concerned at around 75 years. This may cause difficulties when you wish to sell or refinance your flat as it will be effectively unmortgageable. Even though you might not have an immediate plan to sell but when you do your buyer will need to hold off for two years before they can start the legal procedures for an extension to the lease.

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

Retaining our service gives you increased control over the value of your Whitley Bay leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Whitley Bay Lease Extension Example Cases:

Madeleine, Whitley Bay, Tyne And Wear,

Trailing protracted correspondence with the freeholder of her first floor apartment in Whitley Bay, Madeleine started the lease extension process just as her lease was approaching the all-important eighty-year mark. The transaction was concluded in March 2011. The landlord’s fees were negotiated to slightly above 700 GBP.

Whitley Bay case:

Last year we were e-mailed by Dr Jamie Cook , who completed a newly refurbished flat in Whitley Bay in March 1996. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparative flats in Whitley Bay with 100 year plus lease were valued around £285,000. The average ground rent payable was £45 invoiced per annum. The lease terminated in 2097. Having 71 years remaining we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.

Whitley Bay case:

In 2014 we were e-mailed by Mr and Mrs. T Bernard who, having owned a one bedroom flat in Whitley Bay in February 1999. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparative residencies in Whitley Bay with a long lease were in the region of £225,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease elapsed on 23 October 2086. Considering the 60 years unexpired we approximated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 not including professional charges.