Why you should commence your Waterbeach lease extension

Main reasons to commence your Waterbeach lease extension today:

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

The market value of Waterbeach leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the remaining term is less than 80 years

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may decide not to grant a mortgage with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past banks were content with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

Retaining our service will provide you increased control over the value of your Waterbeach leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Waterbeach Lease Extension Case Studies:

Felix, Waterbeach, Cambridgeshire,

Felix owned a studio flat in Waterbeach being sold with a lease of just over 59 years remaining. Felix on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Felix to invoke his statutory right. Felix procured expert advice and was able to make an informed decision and deal with the matter and sell the flat.

Waterbeach case:

Last Winter we were approach by Mrs Megan Cooper , who bought a recently refurbished apartment in Waterbeach in September 2004. The question was if we could approximate the premium could be for a 90 year extension to my lease. Similar premises in Waterbeach with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 invoiced yearly. The lease terminated on 1 October 2104. Taking into account 78 years unexpired we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.

Waterbeach case:

In 2013 we were approached by Mrs Katie González who, having purchased a purpose-built flat in Waterbeach in February 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical flats in Waterbeach with 100 year plus lease were worth £191,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease elapsed in 2084. Taking into account 58 years left we approximated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 plus expenses.