Main reasons to commence your Wapping lease extension

Main reasons to commence your Wapping lease extension today:

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

The nearer a residential lease in Wapping nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, over 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner rather than later. The majority of flat owners in Wapping will meet the qualifying criteria; however a conveyancing solicitor will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold premises in Wapping with more than one hundred years remaining on the lease are sometimes 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 purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lending institutions may decide not to lend on a short lease

The trend since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically lenders were content with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

Lease extensions in Wapping can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Wapping lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Wapping Lease Extension Case Studies:

Ellie, Wapping, London,

In the wake of eight months of lengthy correspondence with the landlord of her leasehold apartment in Wapping, Ellie initiated the lease extension process just as the lease was nearing the crucial 80-year deadline. The lease extension was finalised in June 2006. The landlord’s charges were negotiated to below 650 GBP.

Wapping case:

In 2010 we were approached by Dr Owen Rodríguez who, having moved into a one bedroom apartment in Wapping in August 1997. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Similar homes in Wapping with an extended lease were worth £232,800. The average ground rent payable was £45 collected annually. The lease elapsed in 2091. Having 65 years remaining we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.