Why you should start your New Waltham lease extension

Top reasons for lease extension now:

A New Waltham leasehold property depreciates with the years remaining on the lease.

Unfortunately that a New Waltham residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the New Waltham property prices.Where your lease has approximately 90 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 dips lower than 80 years - otherwise a higher premium will be payable. Most leasehold owners in New Waltham will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.

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

Leasehold premises in New Waltham with over one hundred 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders may not lend with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the unexpired lease term required by lenders has increased. Historically mortgage companies were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

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

The conveyancers that we work with undertake New Waltham 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 lawyer we work with provide it.

New Waltham Lease Extension Example Cases:

Erin, New Waltham, Lincolnshire,

Off the back of lengthy discussions with the freeholder of her studio apartment in New Waltham, Erin initiated the lease extension process just as the lease was coming close to the crucial 80-year mark. The lease extension completed in November 2010. The landlord’s costs were kept to an absolute minimum.

New Waltham case:

Last Autumn we were e-mailed by Mr and Mrs. N Mitchell , who owned a one bedroom flat in New Waltham in November 2009. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in New Waltham with a long lease were valued about £250,000. The mid-range ground rent payable was £50 billed yearly. The lease terminated on 25 May 2096. Having 70 years left we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.

New Waltham case:

Last Christmas we were called by Mr and Mrs. I Rose , who acquired a purpose-built apartment in New Waltham in October 1996. The dilemma was if we could estimate the price could be for a ninety year lease extension. Identical homes in New Waltham with a long lease were valued around £246,800. The average ground rent payable was £60 collected annually. The lease ended on 21 January 2076. Considering the 50 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 plus fees.