Top reasons for Wimbledon lease extension

Main reasons to commence your Wimbledon lease extension today:

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

It’s a harsh truth that a Wimbledon residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Wimbledon property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining falls under eighty years, you will end up paying half 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 additional value that a lease extension will add the property Most leasehold owners in Wimbledon will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.

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

Leasehold residencies in Wimbledon with in excess of 100 years unexpired 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 circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions may not issue a mortgage on a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to get concerned at around 75 years. This may be problematic as and when you wish to market or remortgage your property as it will be effectively unmortgageable. Even though you might have no immediate desire to sell but when you do your purchaser will need to wait a couple of years before being able to exercise the right to a an extension to the lease.

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

The conveyancing solicitors that we work with procure Wimbledon 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.

Wimbledon Lease Extension Case Studies:

Niamh, Wimbledon, South West London,

In the wake of 6 months of lengthy correspondence with the freeholder of her two bedroom flat in Wimbledon, Niamh initiated the lease extension process just as the lease was nearing the all-important 80-year deadline. The legal work was concluded in March 2014. The landlord’s costs were kept to an absolute minimum.

Wimbledon case:

Mr Tommy Gunderson bought a ground floor apartment in Wimbledon in February 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar properties in Wimbledon with an extended lease were valued around £200,000. The average amount of ground rent was £50 collected yearly. The lease lapsed on 4 January 2103. Having 77 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.