Main reasons to start your Whitland lease extension

Top reasons for lease extension now:

Increase your lease and increase your Whitland property value

The market value of Whitland leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than 80 years

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

Leasehold properties in Whitland with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

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

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get nervous at around 75 years. This may be problematic once you wish to market or refinance your flat as it will be effectively unmortgageable. You may have no immediate desire to sell but when you do your buyer will have to hold off for two years before being able to commence the legal procedures for an extension to the lease.

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

The conveyancers that we work with handle Whitland 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.

Whitland Lease Extension Case Summaries:

Tommy, Whitland, Ammanford

14 months ago Tommy, came critically near to the 80-year mark with the lease on his studio flat in Whitland. In buying his home 19 years previously, the unexpired term was of no bearing. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Tommy extended the lease just under the wire last April. Tommy and the freeholder subsequently settled on a premium of £6,000 . If he had missed the deadline, the sum would have escalated by a minimum £850.

Whitland case:

In 2014 we were contacted by Ms Gemma López who, having took over the lease of a newly refurbished apartment in Whitland in July 2011. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable homes in Whitland with 100 year plus lease were valued about £216,000. The average ground rent payable was £60 collected annually. The lease termination date was in 2084. Taking into account 58 years unexpired we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.

Whitland case:

Last June we were e-mailed by Mr and Mrs. K Wright , who completed a first floor flat in Whitland in April 2007. The question was if we could approximate the premium would be for a 90 year lease extension. Comparable residencies in Whitland with an extended lease were valued around £205,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ran out in 2104. Taking into account 78 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.