Why Should You Extend Your Lease? 

South Shields residential leasehold properties are gradually losing value as the properties depreciates with the years remaining on the lease. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. This is partly due to mortgage lenders deciding not to grant a mortgage on a short Lease.

Many mortgage companies will be unwilling to lend with a lease which holds less than 80 years remaining. As a purchaser you may face difficulties in obtaining a mortgage and for a seller you will undoubtably have trouble selling or obtaining finance yourself.

If you are a leasehold owner in South Shields, you would be well advised to investigate 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 increases dramatically as part of the premium you will incur.