Why you should commence your Wanborough lease extension

Why you should commence your Wanborough lease extension today:

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

The market value of a leasehold property in Wanborough depends on how long the lease has left to run. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be finalised ahead of the eighty year mark. Statute enables Wanborough qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not loan monies on a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to get jittery at around 75 years. This may cause difficulties once you wish to sell or refinance your flat as it will be practically unmortgageable. Even though you may have no immediate plan to sell but when you do your purchaser must wait a couple of years before being able to initiate the legal procedures for an extension to the lease.

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

Regardless of whether you are a tenant or a freeholder in Wanborough,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wanborough valuers.

Wanborough Lease Extension Example Cases:

Finn, Wanborough, Wiltshire,

Finn owned a 2 bedroom flat in Wanborough being marketed with a lease of a little over 59 years unexpired. Finn informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Finn to invoke his statutory right. Finn obtained expert legal guidance and secured satisfactory resolution without going to tribunal and sell the property.

Wanborough case:

Ms L Sharif bought a garden apartment in Wanborough in August 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparable residencies in Wanborough with an extended lease were worth £264,000. The average amount of ground rent was £60 billed every twelve months. The lease end date was in 2079. Taking into account 53 years unexpired we estimated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 not including legals.

Wanborough case:

Last Autumn we were e-mailed by Dr Courtney Edwards , who acquired a one bedroom apartment in Wanborough in January 2002. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical properties in Wanborough with 100 year plus lease were valued about £220,400. The average ground rent payable was £45 collected annually. The lease came to a finish on 26 August 2090. Having 64 years remaining we estimated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 not including legals.