Why you should commence your Wisbech lease extension

Main reasons to start your Wisbech lease extension today:

A Wisbech lease depreciates with the years remaining on the lease.

There is no doubt about it a leasehold property in Wisbech is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner than later. Most flat owners in Wisbech will qualify for this right; nevertheless a lawyer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.

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

It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.

Lenders will not grant a mortgage on a short lease

Mortgage companies do not like short residential leases. You most probably experience problems if you want to sell your flat in Wisbech if the unexpired lease term is below the criteria set by most lenders. Different lenders have different criteria but in the main theyrequire a minimum remaining lease term of seventy years.

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

Regardless of whether you are a tenant or a freeholder in Wisbech,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wisbech valuers.

Wisbech Lease Extension Case Studies:

Luca, Wisbech, Cambridgeshire,

Luca was the the leasehold owner of a 2 bedroom flat in Wisbech being sold with a lease of fraction over sixty years remaining. Luca on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Luca to invoke his statutory right. Luca procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.

Wisbech case:

Last Spring we were phoned by Dr A François , who purchased a studio apartment in Wisbech in June 2005. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable properties in Wisbech with a long lease were valued around £235,200. The mid-range ground rent payable was £45 collected quarterly. The lease termination date was in 2092. Taking into account 66 years left we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.

Wisbech case:

In 2011 we were e-mailed by Dr Evan Taylor who, having was assigned a lease of a basement flat in Wisbech in April 1996. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Wisbech with a long lease were in the region of £280,000. The mid-range ground rent payable was £55 billed quarterly. The lease lapsed in 2103. Considering the 77 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.