Top reasons for Watford lease extension

Top reasons for lease extension now:

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

Watford residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.

Watford property with a lease extension is almost the same value as a freehold

Leasehold properties in Watford with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies may not finance a property on a short lease

Many mortgage companies will be unwilling to grant a mortgage on a lease with less than seventy years remaining - although this varies between mortgage companies. A buyer will no doubt find it difficult to obtain a mortgage and this will result in your Watford property becoming difficult to dispose of or to obtain finance on.

What makes us experts in Watford lease extensions?

The lawyers that we work with handle Watford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Watford Lease Extension Case Studies:

Imogen, Watford, Hertfordshire,

Trailing protracted correspondence with the freeholder of her purpose-built flat in Watford, Imogen commenced the lease extension process as the eighty year threshold was fast approaching. The legal work was finalised in September 2012. The freeholder’s charges were kept to an absolute minimum.

Watford case:

Last Christmas we were approach by Mr and Mrs. G Torres , who took over the lease of a newly refurbished apartment in Watford in October 2007. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Comparable homes in Watford with a long lease were valued about £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease came to a finish on 11 May 2101. Having 75 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.