Main reasons to commence your Wanstead Flats lease extension

Why you should start your Wanstead Flats lease extension today:

A Wanstead Flats leasehold property depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Wanstead Flats. Clearly, the term of lease remaining reduces over time. This may pass by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Wanstead Flats have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. You should give careful deliberation before delaying your Wanstead Flats lease extension. Putting off the cost now likely increases the price you will eventually have to pay to extend your lease

Wanstead Flats property with a lease extension is almost the same value as a freehold

Leasehold properties in Wanstead Flats with over 100 years remaining 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 home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders will not grant a mortgage with a short lease

Lending institutions have specific criteria when lending funds secured on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term goes beneath a specified unexpired lease term. Many Lending institutions will not regard property with an unexpired term of less than seventy years suitable security. As well as impacting your ability to sell, it is also relevant where you are wanting to refinance your Wanstead Flats home.

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

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

Wanstead Flats Lease Extension Case Summaries:

Jayden, Wanstead Flats, North East London,

Jayden was the the leasehold owner of a high value apartment in Wanstead Flats on the market with a lease of fraction over 72 years remaining. Jayden informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Jayden to exercise his statutory right. Jayden procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.

Wanstead Flats case:

Mr and Mrs. B Adams completed a one bedroom apartment in Wanstead Flats in June 2001. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Similar premises in Wanstead Flats with a long lease were valued around £193,400. The mid-range amount of ground rent was £65 collected monthly. The lease concluded in 2085. Taking into account 59 years unexpired we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including professional charges.

Wanstead Flats case:

Mr and Mrs. G Bennett acquired a purpose-built flat in Wanstead Flats in July 2007. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Wanstead Flats with an extended lease were worth £255,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease end date was on 3 June 2096. Having 70 years unexpired we approximated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 not including costs.