Top reasons for Wanstead lease extension

Why you should commence your Wanstead lease extension today:

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

Unfortunately that a Wanstead residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Wanstead property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be due. The majority of flat owners in Wanstead will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.

Wanstead property with a lease extension has roughly the same value as a freehold

Leasehold properties in Wanstead with over one hundred years outstanding on the lease are sometimes regarded as a ‘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 purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lenders will not grant a mortgage with a short lease

Mortgage companies do not like short residential leases. You most probably experience problems if you need to sell your flat in Wanstead if the remaining lease term is less than the criteria set by most mortgage companies. Different lenders have varying requirements but in the main theyrequire an unexpired term of at least 65 years.

What makes us experts in Wanstead lease extensions?

The conveyancers that we work with handle Wanstead lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Wanstead Lease Extension Case Studies:

Nathaniel, Wanstead, North East London

During the course of the last few months Nathaniel, came precariously near to the 80-year mark with the lease on his purpose- built apartment in Wanstead. In buying his flat two decades ago, the length of the lease was of little significance. Luckily, he realised he would soon be paying an escalated premium for Extending the lease. Nathaniel arranged for a lease extension just under the wire in May. Nathaniel and the landlord eventually agreed on sum of £5,000 . If the lease had slid below 80 years, the premium would have escalated by at least £1,125.

Wanstead case:

Mr F Morel moved into a basement flat in Wanstead in January 2001. The question was if we could approximate the price would likely be to extend the lease by ninety years. Identical flats in Wanstead with an extended lease were valued around £270,000. The average amount of ground rent was £65 collected yearly. The lease terminated on 27 April 2094. Having 68 years left we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.