Top reasons for Witham lease extension

Top reasons for lease extension now:

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

The value of Witham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the unexpired lease term is below than 80 years

An extended lease is almost the same value as a freehold

Leasehold properties in Witham with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.

Lenders may not finance a property with a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to get concerned at around 75 years. This will cause difficulties as and when you come to market or refinance your property as it will be practically unmortgageable. You may have no imminent plan to sell but when you do your purchaser must hold off for a couple of years before they can start the legal procedures for a lease extension.

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

The conveyancing solicitors that we work with procure Witham 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.

Witham Lease Extension Example Cases:

Lucy, Witham, Essex,

After protracted negotiations with the freeholder of her leasehold flat in Witham, Lucy initiated the lease extension process as the eighty year deadline was swiftly nearing. The transaction was finalised in January 2008. The freeholder’s costs were restricted to under 650 GBP.

Witham case:

Last Winter we were approach by Mr and Mrs. L Wood , who moved into a garden flat in Witham in June 2005. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar homes in Witham with an extended lease were in the region of £246,800. The average ground rent payable was £60 invoiced every twelve months. The lease expired on 15 June 2076. Considering the 50 years left we calculated the premium to the landlord to extend the lease to be within £44,700 and £51,600 plus expenses.

Witham case:

In 2011 we were contacted by Mrs M Brown who, having owned a basement flat in Witham in October 2006. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparative premises in Witham with an extended lease were worth £208,200. The average amount of ground rent was £65 invoiced monthly. The lease lapsed in 2087. Taking into account 61 years unexpired we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 not including professional charges.