Why you should commence your Wigan lease extension

Why you should commence your Wigan lease extension today:

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

Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Wigan. Clearly, the length of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the property needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Wigan have the legal entitlement to extend the lease for an additional 90 years under statute. Please give careful attention before putting off your Wigan lease extension. Holding off the cost now likely increases the price you will ultimately incur for a lease extension

An extended lease has roughly the same value as a freehold

It is generally considered that a property with over 100 years unexpired lease term is worth approximately 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 many years in the future.

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

The definition of a short lease varies by mortgage company, yet banks and building societies start to get jittery at around 75 years. This will be problematic as and when you need to dispose of or remortgage your flat as it will be effectively unmortgageable. You may not have an imminent intention to sell but when you do your purchaser will need to wait two years before being able to exercise the right to a a lease extension.

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

Lease extensions in Wigan can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Wigan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Wigan Lease Extension Example Cases:

Courtney, Wigan, Greater Manchester,

Trailing unsuccessful correspondence with the freeholder of her two bedroom flat in Wigan, Courtney initiated the lease extension process as the eighty year mark was swiftly nearing. The lease extension was finalised in May 2005. The landlord’s fees were kept to an absolute minimum.

Wigan case:

Last year we were called by Dr Katie Evans , who was assigned a lease of a purpose-built flat in Wigan in January 2011. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparable premises in Wigan with a long lease were worth £242,600. The average ground rent payable was £45 invoiced every twelve months. The lease terminated in 2092. Having 67 years remaining we estimated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 not including professional charges.

Wigan case:

In 2010 we were contacted by Dr Y Bernard who, having completed a recently refurbished apartment in Wigan in April 1999. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical premises in Wigan with an extended lease were worth £280,000. The mid-range ground rent payable was £55 billed per annum. The lease terminated in 2103. Having 78 years unexpired we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.