Main reasons to 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.

For those whose Durham flat is held on a long lease, our message is clear – if nothing is done, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.

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

Leasehold residencies in Durham with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Banks and Building Societies may not grant a mortgage with a short lease

Mortgage lenders have specific criteria when lending funds charged on leasehold homes. Many will simply not lend at all once an unexpired lease term slips below a specified unexpired lease term. Many Lending institutions will not consider property with a remaining term of less than seventy years as acceptable security. As well as impacting your ability to sell, it is also relevant where you are wanting to remortgage your Durham property.

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

Irrespective of whether you are a tenant or a freeholder in Durham,the lease extension solicitors that we work with will always be happy 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 Example Cases:

Jacob, Durham, County Durham,

Jacob owned a high value flat in Durham being sold with a lease of a few days over 59 years left. Jacob on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jacob to invoke his statutory right. Jacob procured expert advice and secured satisfactory resolution informally and sell the flat.

Durham case:

In 2014 we were phoned by Dr Y Jones who, having took over the lease of a ground floor apartment in Durham in October 1996. The question was if we could estimate the price would be for a ninety year extension to my lease. Identical flats in Durham with a long lease were worth £250,000. The mid-range ground rent payable was £50 billed yearly. The lease lapsed on 7 April 2095. Having 69 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.

Durham case:

Last September we were contacted by Mr and Mrs. V Simon , who moved into a first floor apartment in Durham in August 1998. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Durham with 100 year plus lease were valued about £290,000. The average ground rent payable was £60 collected quarterly. The lease lapsed in 2106. Having 80 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.