Top reasons for Wapping lease extension

Why you should start your Wapping lease extension today:

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

Wapping leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Wapping will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Wapping with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lenders may decide not to loan monies with a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically banks were content with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in Wapping lease extensions?

Regardless of whether you are a tenant or a landlord in Wapping,the lease extension experts 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 Wapping valuers.

Wapping Lease Extension Case Studies:

Lydia, Wapping, London,

After unsuccessful correspondence with the landlord of her two bedroom flat in Wapping, Lydia commenced the lease extension process just as the lease was approaching the critical 80-year mark. The transaction completed in May 2007. The landlord’s charges were kept to an absolute minimum.

Wapping case:

Mr and Mrs. V Gray was assigned a lease of a garden apartment in Wapping in March 1996. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Similar premises in Wapping with an extended lease were worth £218,000. The average amount of ground rent was £45 billed quarterly. The lease concluded on 9 November 2088. Taking into account 63 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 not including expenses.