Why you should start your Whitehaven lease extension

Top reasons for lease extension now:

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

It’s a harsh truth that a Whitehaven residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Whitehaven property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term falls below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Whitehaven will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.

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

It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not lend with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet mortgage lenders start to get jittery at around 75 years. This will cause difficulties as and when you come to dispose of or refinance your property as it will be practically unmortgageable. Even though you might have no imminent intention to sell but when you do your purchaser must hold off for a couple of years before they can commence the legal procedures for an extension to the lease.

What makes us experts in Whitehaven lease extensions?

Engaging our service gives you enhanced control over the value of your Whitehaven leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Whitehaven Lease Extension Case Studies:

Louise, Whitehaven, Cumbria,

After unsuccessful discussions with the freeholder of her one bedroom apartment in Whitehaven, Louise started the lease extension process as the eighty year deadline was rapidly approaching. The lease extension was concluded in October 2006. The landlord’s charges were kept to an absolute minimum.

Whitehaven case:

Mr and Mrs. E Hernández bought a recently refurbished flat in Whitehaven in November 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable homes in Whitehaven with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 billed quarterly. The lease concluded in 2106. Taking into account 80 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.

Whitehaven case:

In 2014 we were called by Mr and Mrs. S Norbert who, having took over the lease of a first floor apartment in Whitehaven in November 2011. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparative premises in Whitehaven with a long lease were valued around £275,000. The average ground rent payable was £45 billed annually. The lease terminated in 2095. Given that there were 69 years unexpired we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.