Main reasons to start your Warwick lease extension

Why you should start your Warwick lease extension today:

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

When it comes to residential leasehold premises in Warwick, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Residents in Warwick with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once a lease has less than 80 years remaining, under the relevant Act the freeholder is entitled to calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is due.

Warwick property with a lease extension has roughly the same value as a freehold

Leasehold properties in Warwick with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may not lend on a short lease

Banks and building societies do not like short residential leases. You most probably encounter problems if you want to sell your flat in Warwick if the remaining lease term is less than the criteria set by the majority of lenders. Different mortgage companies have varying criteria but on the whole they are looking for a minimum remaining lease term of 65 years.

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

Lease extensions in Warwick can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.

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 dealing with Warwick lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Warwick Lease Extension Case Summaries:

Stephanie, Warwick, Warwickshire,

Off the back of lengthy discussions with the landlord of her garden flat in Warwick, Stephanie commenced the lease extension process as the 80 year mark was swiftly coming. The lease extension was concluded in June 2013. The freeholder’s costs were restricted to under four hundred GBP.

Warwick case:

Last Spring we were e-mailed by Mr and Mrs. E Flores , who took over the lease of a basement apartment in Warwick in November 2001. We are asked if we could approximate the price would be for a 90 year lease extension. Similar flats in Warwick with an extended lease were in the region of £250,400. The average ground rent payable was £65 collected annually. The lease concluded in 2090. Given that there were 64 years outstanding we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 plus legals.

Warwick case:

Last month we were contacted by Dr U Evans , who acquired a one bedroom apartment in Warwick in June 2012. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative properties in Warwick with 100 year plus lease were valued around £189,000. The mid-range ground rent payable was £55 billed yearly. The lease came to a finish in 2079. Given that there were 53 years remaining we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of expenses.