Why you should start your 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 diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Durham residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Durham you really ought to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

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

Leasehold properties in Durham with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies may decide not to finance a property on a short lease

Most mortgage lenders have tightened lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly below 75 years as they are considered to be deficient for lending purposes.

What makes us experts in Durham lease extensions?

Retaining our service gives you better control over the value of your Durham leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Durham Lease Extension Example Cases:

Arthur, Durham, County Durham

Last Autumn Arthur, came very near to the 80-year mark with the lease on his studio flat in Durham. In buying his property 19 years previously, the lease term was of no significance. Thankfully, it dawned on him that he would imminently be paying way over the odds for a lease extension. Arthur arranged for a lease extension just under the wire in January. Arthur and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If he failed to meet the deadline, the price would have gone up by a minimum £1,075.

Durham case:

In 2011 we were e-mailed by Mr and Mrs. Y Simon who, having bought a one bedroom apartment in Durham in March 2000. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Durham with 100 year plus lease were in the region of £246,800. The mid-range amount of ground rent was £60 collected per annum. The lease elapsed on 8 August 2076. Having 50 years outstanding we approximated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of expenses.

Durham case:

Last Spring we were contacted by Mr T Torres , who bought a first floor apartment in Durham in January 1996. The question was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Identical properties in Durham with a long lease were worth £208,200. The average ground rent payable was £65 invoiced yearly. The lease terminated in 2087. Having 61 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of professional charges.