Why you should commence your Wallingford lease extension

Top reasons for lease extension now:

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

Wallingford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Wallingford residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Wallingford you would be well advised to check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold residencies in Wallingford with in excess of one hundred years unexpired 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 estate charges warrant it.

Banks and Building Societies may not loan monies with a short lease

Lenders do not like short residential leases. You most probably encounter difficulties where you need to sell your flat in Wallingford if the unexpired term of your lease is under the criteria set by the majority of lenders. Different mortgage companies have different requirements but on the whole they are looking for a minimum remaining lease term of seventy years.

Why use us for your lease extension in Wallingford?

Regardless of whether you are a tenant or a landlord in Wallingford,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wallingford valuers.

Wallingford Lease Extension Case Studies:

Daniel, Wallingford, Oxfordshire,

Daniel was the the leasehold owner of a high value apartment in Wallingford on the market with a lease of a little over 59 years outstanding. Daniel informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.

Wallingford case:

In 2013 we were e-mailed by Mr and Mrs. T Edwards who, having owned a one bedroom apartment in Wallingford in August 2008. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparative flats in Wallingford with a long lease were valued about £201,200. The mid-range ground rent payable was £55 billed annually. The lease concluded in 2082. Taking into account 56 years as a residual term we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of expenses.

Wallingford case:

Dr B Mitchell completed a garden flat in Wallingford in February 2005. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Identical homes in Wallingford with 100 year plus lease were valued about £300,000. The mid-range amount of ground rent was £50 billed yearly. The lease finished in 2102. Considering the 76 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.