Main reasons to commence your Wellingborough lease extension

Main reasons to commence your Wellingborough lease extension today:

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

Wellingborough leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Wellingborough enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Wellingborough you would be well advised to check if your lease has between 70 and 90 years left. There are good reasons why a Wellingborough flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is actioned without delay

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

Leasehold residencies in Wellingborough with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions will not loan monies with a short lease

Banks and Building Societies have specific criteria when lending monies secured on leasehold homes. Many will simply refuse lend at all once an unexpired lease term goes lower than a specified unexpired lease term. Many Mortgage lenders will not consider property with a remaining term of less than seventy years suitable security. In addition to impacting your ability to sell, it is also relevant where you are intending to remortgage your Wellingborough home.

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

Irrespective of whether you are a tenant or a freeholder in Wellingborough,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wellingborough valuers.

Wellingborough Lease Extension Example Cases:

Rhiannon, Wellingborough, Northamptonshire,

Off the back of lengthy negotiations with the freeholder of her studio flat in Wellingborough, Rhiannon commenced the lease extension process just as her lease was nearing the all-important 80-year threshold. The legal work was concluded in August 2006. The freeholder’s costs were kept to an absolute minimum.

Wellingborough case:

Last month we were e-mailed by Mr Ibrahim White , who was assigned a lease of a one bedroom apartment in Wellingborough in July 1996. We are asked if we could estimate the price would be to extend the lease by 90 years. Similar homes in Wellingborough with a long lease were in the region of £225,800. The average ground rent payable was £60 invoiced per annum. The lease lapsed in 2086. Given that there were 60 years left we calculated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 not including costs.

Wellingborough case:

In 2012 we were e-mailed by Mr and Mrs. E Sharif who, having owned a studio apartment in Wellingborough in September 1995. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Wellingborough with an extended lease were in the region of £210,000. The average amount of ground rent was £50 invoiced annually. The lease elapsed in 2106. Given that there were 80 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.