Top reasons for Durham lease extension

Main reasons to commence your Durham lease extension today:

Increase your lease and increase your Durham property value

The value of Durham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the unexpired lease term is less than 80 years

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

Leasehold premises in Durham with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may not lend on a short lease

Banks and building societies are really restricting their approach as regards to homes in Durham with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so where you wanted to sell, your only options would be to find a cash buyer, or hope for the best at auction thus narrowing the number of potential purchasers.

What makes us experts in Durham lease extensions?

Lease extensions in Durham can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor 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 dealing with 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:

Zoe, Durham, County Durham,

Following protracted discussions with the landlord of her garden apartment in Durham, Zoe initiated the lease extension process as the 80 year mark was rapidly approaching. The transaction was finalised in March 2011. The freeholder’s fees were restricted to a tad over 550 pounds.

Durham case:

Last Christmas we were contacted by Mr B Alexander , who was assigned a lease of a one bedroom flat in Durham in September 2005. The question was if we could estimate the premium could be to prolong the lease by 90 years. Comparative homes in Durham with a long lease were valued about £210,600. The mid-range amount of ground rent was £45 billed per annum. The lease ran out in 2088. Taking into account 62 years outstanding we estimated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of expenses.

Durham case:

Mr and Mrs. R González moved into a first floor apartment in Durham in June 2012. We are asked if we could estimate the price could be to prolong the lease by 90 years. Similar properties in Durham with a long lease were in the region of £265,000. The average amount of ground rent was £50 billed quarterly. The lease elapsed in 2099. Considering the 73 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.