Why you should commence your Wimbledon lease extension

Why you should start your Wimbledon lease extension today:

Increase your lease and increase your Wimbledon property value

Wimbledon residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.

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

Leasehold residencies in Wimbledon with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.

Lending institutions will not finance a property on a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements generally - 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 lenders has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Wimbledon lease extensions?

Using our service will provide you better control over the value of your Wimbledon leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Wimbledon Lease Extension Example Cases:

David, Wimbledon, South West London

Last October David, started to get near to the 80-year mark with the lease on his studio apartment in Wimbledon. In buying his home two decades ago, the length of the lease was of minimal interest. Thankfully, he realised he needed to take action soon on a lease extension. David extended the lease at the eleventh hour in April. David and the freeholder via the management company ultimately settled on the final figure of £5,500 . If he had missed the deadline, the sum would have become more exhorbitant by at least £850.

Wimbledon case:

In 2014 we were e-mailed by Ms K Brooks who, having purchased a studio apartment in Wimbledon in August 2003. We are asked if we could approximate the price could be to prolong the lease by 90 years. Similar homes in Wimbledon with 100 year plus lease were worth £216,000. The average ground rent payable was £60 billed annually. The lease elapsed in 2082. Taking into account 58 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including fees.