Why you should start your Whitehaven lease extension

Main reasons to start your Whitehaven lease extension today:

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

The closer a domestic lease in Whitehaven gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 99 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner rather than later. Most flat owners in Whitehaven will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.

Mortgage lenders may decide not to grant a mortgage on a short lease

The trend since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Whitehaven lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with handle Whitehaven 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.

Whitehaven Lease Extension Case Studies:

Joseph, Whitehaven, Cumbria

In recent months Joseph, started to get close to the eighty-year mark with the lease on his studio flat in Whitehaven. In buying his property 19 years ago, the length of the lease was of no relevance. Thankfully, he noticed he needed to take action soon on Extending the lease. Joseph was able to extend his lease just in the nick of time in August. Joseph and the freeholder via the management company ultimately settled on a premium of £5,000 . If the lease had descended lower than eighty years, the price would have become more costly by at least £950.

Whitehaven case:

In 2010 we were called by Mr and Mrs. E Clarke who, having completed a newly refurbished apartment in Whitehaven in October 2010. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative homes in Whitehaven with 100 year plus lease were worth £184,000. The average ground rent payable was £55 invoiced yearly. The lease elapsed on 16 January 2079. Taking into account 53 years outstanding we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of costs.

Whitehaven case:

In 2009 we were phoned by Mr and Mrs. E García who, having acquired a studio apartment in Whitehaven in August 1998. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparable properties in Whitehaven with a long lease were worth £290,000. The mid-range ground rent payable was £45 billed every twelve months. The lease ended in 2099. Taking into account 73 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.