Top reasons for Durham lease extension

Main reasons to start your Durham lease extension today:

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

Durham leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Durham will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In certain cases you may not qualify. There are prescribed timetables and steps to follow once the process has started so it’s prudent to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Durham with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lending institutions may not grant a mortgage with a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to become concerned at around 75 years. This will be problematic once you come to sell or remortgage your flat as it will be effectively unmortgageable. You may have no immediate plan to sell but when you do your purchaser will have to hold off for two years before they can start the legal procedures for an extension to the lease.

What makes us experts in Durham lease extensions?

Lease extensions in Durham can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Durham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Durham Lease Extension Case Studies:

Ben, Durham, County Durham

Two years ago Ben, came precariously near to the eighty-year threshold with the lease on his basement flat in Durham. In buying his property 19 years previously, the length of the lease was of no concern. Luckily, he recognised he needed to take steps soon on a lease extension. Ben extended the lease just in the nick of time in May. Ben and the landlord in the end agreed on the final figure of £5,000 . If he not met the deadline, the price would have escalated by a minimum £1,125.

Durham case:

In 2010 we were approached by Mr and Mrs. O Mitchell who, having acquired a garden flat in Durham in August 2008. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar properties in Durham with 100 year plus lease were valued about £166,400. The average ground rent payable was £60 collected quarterly. The lease finished on 15 March 2080. Having 54 years remaining we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus legals.

Durham case:

In 2009 we were phoned by Ms Naomi Clark who, having moved into a purpose-built apartment in Durham in May 2001. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Comparable residencies in Durham with an extended lease were in the region of £227,800. The average ground rent payable was £45 invoiced quarterly. The lease ran out in 2091. Taking into account 65 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of expenses.