Main reasons to commence your Wem lease extension

Top reasons for lease extension now:

Increase your lease and increase your Wem property value

Wem leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the current lease dips under eighty years - otherwise a higher premium will be due. Flat owners in Wem will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.

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

Leasehold properties in Wem with over one hundred years left on the lease are often 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 to be gained by 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

The trend since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. Historically mortgage companies were content with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Wem lease extensions?

The conveyancers that we work with procure Wem 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.

Wem Lease Extension Example Cases:

Jackson, Wem, Shropshire,

Jackson was the the leasehold proprietor of a 2 bedroom apartment in Wem being marketed with a lease of a little over sixty years outstanding. Jackson on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jackson to invoke his statutory right. Jackson obtained expert advice and secured satisfactory resolution informally and sell the property.

Wem case:

Last May we were phoned by Mr P Green , who purchased a one bedroom flat in Wem in February 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. Comparative flats in Wem with a long lease were in the region of £206,200. The average amount of ground rent was £60 invoiced every twelve months. The lease expired in 2082. Having 56 years remaining we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus fees.

Wem case:

Last Christmas we were e-mailed by Ms Daisy Smith , who owned a one bedroom flat in Wem in July 2010. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical homes in Wem with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 billed quarterly. The lease terminated in 2102. Given that there were 76 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.