Top reasons for Warlingham lease extension

Top reasons for lease extension now:

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

The nearer a residential lease in Warlingham gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, beyond 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Many flat owners in Warlingham will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common 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 Warlingham with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Lenders are making their criteria more stringent and many now require flats to have a minimum of sixty if not seventy years left at the end of the mortgage. Considering many flats in Warlingham were created in the fifties, sixties and seventies this means many now require lease extensions if they wish to obtain a mortgage.

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

Irrespective of whether you are a tenant or a freeholder in Warlingham,the lease extension experts 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 Warlingham valuers.

Warlingham Lease Extension Example Cases:

Samantha, Warlingham, Surrey,

Subsequent to protracted correspondence with the freeholder of her first floor apartment in Warlingham, Samantha commenced the lease extension process as the eighty year mark was fast coming. The transaction was concluded in April 2006. The freeholder’s charges were kept to an absolute minimum.

Warlingham case:

Last Summer we were e-mailed by Dr D Petit , who completed a recently refurbished flat in Warlingham in August 2006. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Warlingham with 100 year plus lease were valued around £218,000. The average ground rent payable was £45 collected monthly. The lease expired on 5 August 2089. Given that there were 63 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 not including expenses.