Main reasons to start your Witham lease extension

Main reasons to start your Witham lease extension today:

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

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

An extended lease is almost the same value as a freehold

Leasehold properties in Witham with over 100 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 property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions may not grant a mortgage on a short lease

Nearly all banks and building societies require a lengthy amount of time remaining on any leasehold residence before they will contemplate it as adequate security. Regardless of whether you require a mortgage, you should be conscious that it is probable that someone intending to buy your property in the future might well do, so where they can't get a mortgage, then the financial worth of your property will likely suffer. In the last decade most banks and building societies have increased the required minimum lease length that they are prepared to accept

What makes us experts in Witham lease extensions?

Regardless of whether you are a tenant or a freeholder in Witham,the lease extension experts 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 Witham valuers.

Witham Lease Extension Case Summaries:

Sam, Witham, Essex

Half a year ago Sam, started to get near to the eighty-year threshold with the lease on his studio flat in Witham. In buying his flat 18 years previously, the lease term was of little relevance. As luck would have it, he became aware that he would imminently be paying an escalated premium for Extending the lease. Sam arranged for a lease extension just in the nick of time last June. Sam and the landlord eventually settled on an amount of £5,000 . If he failed to meet the deadline, the price would have become more exhorbitant by a minimum £1,025.

Witham case:

In 2013 we were approached by Mr and Mrs. B Reed who, having was assigned a lease of a garden flat in Witham in October 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Witham with 100 year plus lease were worth £191,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease ran out on 18 October 2084. Considering the 58 years unexpired we calculated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 plus legals.

Witham case:

Last Spring we were phoned by Mrs L Baker , who took over the lease of a one bedroom flat in Witham in April 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparative residencies in Witham with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease expired in 2095. Taking into account 69 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.