Why you should start your Much Wenlock lease extension

Why you should commence your Much Wenlock lease extension today:

A Much Wenlock leasehold property depreciates with the years remaining on the lease.

Unfortunately that a Much Wenlock residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Much Wenlock property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be payable. Most leasehold owners in Much Wenlock will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.

An extended lease is almost the same value as a freehold

Leasehold properties in Much Wenlock with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lending institutions may not lend with a short lease

Banks and Building Societies have set criteria when lending monies charged on leasehold property. Some will simply not lend at all once an unexpired lease term slips below a certain unexpired lease term. Many Lending institutions will not regard property with an unexpired term of less than 75 years as adequate security. As well as this being important when selling, it is also relevant where you are intending to remortgage your Much Wenlock home.

What makes us experts in Much Wenlock lease extensions?

Retaining our service gives you better control over the value of your Much Wenlock leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Much Wenlock Lease Extension Case Studies:

Aiden, Much Wenlock, Shropshire,

Aiden was the the leasehold owner of a 2 bedroom flat in Much Wenlock on the market with a lease of a few days over 72 years outstanding. Aiden informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be due on a lease extension were Aiden to invoke his statutory right. Aiden obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Much Wenlock case:

Last Summer we were called by Mr Ibrahim Smith , who was assigned a lease of a one bedroom flat in Much Wenlock in August 2001. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar residencies in Much Wenlock with an extended lease were in the region of £264,000. The average ground rent payable was £60 invoiced every twelve months. The lease expired in 2079. Considering the 53 years remaining we estimated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of legals.

Much Wenlock case:

Last Winter we were e-mailed by Dr R Cox , who acquired a basement apartment in Much Wenlock in July 2002. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative homes in Much Wenlock with an extended lease were worth £225,400. The average amount of ground rent was £45 invoiced quarterly. The lease concluded on 5 January 2090. Having 64 years unexpired we approximated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 not including professional charges.