Why you should commence your Durham lease extension

Why you should start your Durham lease extension today:

Increase your lease and increase your Durham property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Durham. Clearly, the term of lease left reduces as time goes by. This is often overlooked and only becomes a problem when the property has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Eligible leaseholders in Durham have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. You should give careful consideration before delaying your Durham lease extension. Putting off the cost now only increases the price you will eventually have to pay for a lease extension

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Banks and Building Societies may not loan monies on a short lease

Mortgage lenders have set criteria when lending monies secured on leasehold homes. Some will simply refrain from lending at all once the residual lease term goes below a specified unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired below seventy years as adequate security. In addition to this being important when selling, it is also relevant if you are seeking to remortgage your Durham property.

What makes us experts in Durham lease extensions?

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

Durham Lease Extension Case Studies:

Edward, Durham, County Durham,

Edward was the the leasehold owner of a studio apartment in Durham on the market with a lease of fraction over 72 years outstanding. Edward on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Edward to exercise his statutory right. Edward obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.

Durham case:

In 2011 we were phoned by Mr I King who, having took over the lease of a purpose-built flat in Durham in July 2008. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Identical residencies in Durham with an extended lease were valued about £270,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease concluded on 10 July 2100. Having 74 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.

Durham case:

Last Winter we were approach by Mr I Martin , who took over the lease of a one bedroom apartment in Durham in September 2010. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparable properties in Durham with an extended lease were worth £166,400. The mid-range amount of ground rent was £60 collected quarterly. The lease ran out in 2080. Having 54 years as a residual term we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus costs.