Main reasons to start your Wanstead lease extension

Top reasons for lease extension now:

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

The re-sale value of a leasehold property in Wanstead depends on how many years the lease has left to run. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years to run so that formalities can be finalised prior to the 80 year cut off point. Current legislation enables Wanstead qualifying lessees to an additional term of 90 years over and above the remaining term, at a notional rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold residencies in Wanstead with more than 100 years left 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 upside in buying the freehold unless savings on ground rent and estate charges justify it.

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

Banks and Building Societies have specific criteria when loaning funds charged on leasehold property. Many will simply refrain from lending at all once the remaining lease term goes beneath a specified unexpired lease term. Many Mortgage lenders will not regard property with a remaining term of less than 75 years as adequate security. As well as this being important when selling, it is also relevant where you are intending to refinance your Wanstead home.

What makes us experts in Wanstead lease extensions?

The conveyancing solicitors 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 conveyancer we work with provide it.

Wanstead Lease Extension Case Summaries:

Jackson, Wanstead, North East London

Half a year ago Jackson, came very close to the eighty-year threshold with the lease on his purpose- built flat in Wanstead. In buying his property 18 years previously, the lease term was of no importance. Fortunately, he noticed he needed to take action soon on Extending the lease. Jackson arranged for a lease extension just in the nick of time last May. Jackson and the freeholder eventually agreed on an amount of £5,000 . If he not met the deadline, the figure would have gone up by at least £975.

Wanstead case:

Last Spring we were called by Mr and Mrs. D Lee , who purchased a one bedroom apartment in Wanstead in October 2011. The question was if we could approximate the premium could be to extend the lease by ninety years. Comparable flats in Wanstead with 100 year plus lease were valued about £213,600. The average ground rent payable was £60 invoiced every twelve months. The lease concluded in 2082. Considering the 57 years outstanding we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including fees.