Top reasons for Wanstead lease extension

Why you should commence your Wanstead lease extension today:

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

When it comes to domestic leasehold property in Wanstead, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are fewer than eighty years remaining. Leasehold owners in Wanstead with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once the lease term has fewer than eighty years outstanding, under the relevant Act the landlord can calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.

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

Leasehold properties in Wanstead with more than one hundred years remaining on the lease are sometimes 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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.

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

Banks and Building Societies have set criteria when loaning monies secured on leasehold property. Many will simply refrain from lending at all once an unexpired lease term slips under a specified unexpired lease term. Many Lending institutions will not consider property with a remaining below 75 years as adequate security. In addition to impacting your ability to sell, it is also relevant if you are wanting to refinance your Wanstead property.

What makes us experts in Wanstead lease extensions?

Regardless of whether you are a tenant or a freeholder in Wanstead,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wanstead valuers.

Wanstead Lease Extension Example Cases:

Ethan, Wanstead, North East London,

Ethan was the the leasehold proprietor of a high value flat in Wanstead being sold with a lease of a little over fifty eight years outstanding. Ethan on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ethan to exercise his statutory right. Ethan procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.

Wanstead case:

Dr A Díaz purchased a one bedroom flat in Wanstead in March 2012. We are asked if we could approximate the premium could be to extend the lease by an additional years. Identical homes in Wanstead with an extended lease were in the region of £250,400. The average ground rent payable was £65 collected every twelve months. The lease came to a finish in 2090. Given that there were 64 years left we estimated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 plus expenses.