Top reasons for Woodley lease extension

Why you should commence your Woodley lease extension today:

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

The only way is down when it comes to Woodley lease terms. Woodley leaseholds that have a residual term less than than eighty years will reduce in value even faster, and the cost to extend your lease will go up.

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

Leasehold properties in Woodley with in excess of one hundred years outstanding on the lease are often referred to as ‘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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lenders will not loan monies with a short lease

The propensity since 2008 has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the unexpired lease term required by lenders has increased. Historically banks were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Woodley lease extensions?

Using our service gives you enhanced control over the value of your Woodley leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Woodley Lease Extension Example Cases:

Daniel, Woodley, Berkshire,

Daniel owned a studio apartment in Woodley on the market with a lease of a little over fifty eight years outstanding. Daniel on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and secured satisfactory resolution informally and readily saleable.

Woodley case:

Last Christmas we were approach by Mrs L Scott , who owned a newly refurbished apartment in Woodley in April 1999. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical homes in Woodley with 100 year plus lease were in the region of £290,000. The average ground rent payable was £60 collected per annum. The lease concluded on 20 February 2106. Taking into account 80 years left we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus expenses.

Woodley case:

In 2013 we were called by Dr Gemma Turner who, having purchased a recently refurbished flat in Woodley in July 1995. The question was if we could approximate the premium could be to prolong the lease by an additional years. Comparable homes in Woodley with a long lease were in the region of £200,800. The average amount of ground rent was £65 billed per annum. The lease finished on 11 February 2086. Taking into account 60 years outstanding we estimated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 not including costs.