Main reasons to commence your Wanborough lease extension

Why you should commence your Wanborough lease extension today:

Increase your lease and increase your Wanborough property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Wanborough. Clearly, the term of lease left reduces over time. This is often overlooked and only becomes a problem when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Eligible long lease owners in Wanborough have the right to extend the lease for a further ninety years in accordance with legislation. Please give due deliberation before putting off your Wanborough lease extension. Putting off that expense now only increases the price you will ultimately have to pay for a lease extension

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Banks and Building Societies will not grant a mortgage on a short lease

The trend since 2008 has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has resulted in the unexpired lease term required by banks has increased. Historically banks would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved 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 Wanborough lease extensions?

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

Wanborough Lease Extension Example Cases:

Chelsea, Wanborough, Wiltshire,

Following unsuccessful discussions with the freeholder of her ground floor flat in Wanborough, Chelsea initiated the lease extension process just as her lease was nearing the critical eighty-year threshold. The legal work was finalised in September 2007. The landlord’s fees were restricted to below 700 pounds.

Wanborough case:

In 2010 we were phoned by Ms Natasha Thomas who, having bought a ground floor flat in Wanborough in November 1995. The dilemma was if we could estimate the price would be to prolong the lease by 90 years. Comparable flats in Wanborough with an extended lease were in the region of £260,000. The average amount of ground rent was £50 billed yearly. The lease elapsed in 2098. Taking into account 72 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.

Wanborough case:

In 2012 we were contacted by Dr R Ward who, having owned a studio flat in Wanborough in September 2004. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Similar properties in Wanborough with an extended lease were valued around £256,600. The average amount of ground rent was £60 invoiced annually. The lease finished on 7 March 2078. Considering the 52 years as a residual term we estimated the premium to the landlord to extend the lease to be within £41,800 and £48,400 plus professional charges.