Why you should start your Whimple lease extension

Top reasons for lease extension now:

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

Whimple 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 your lease becomes more expensive. It is the case that most Whimple tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Whimple you really ought to investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Whimple flat owner with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

Leasehold residencies in Whimple with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Mortgage lenders may not finance a property on a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to become nervous at around 75 years. This will cause difficulties as and when you wish to market or remortgage your property as it will be effectively unmortgageable. You might not have an immediate intention to sell but when you do your buyer will have to wait a couple of years before they can exercise the right to a an extension to the lease.

Why use us for your lease extension in Whimple?

Retaining our service will provide you enhanced control over the value of your Whimple leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Whimple Lease Extension Example Cases:

Mason, Whimple, Devon,

Mason was the the leasehold proprietor of a high value flat in Whimple being sold with a lease of fraction over fifty eight years remaining. Mason on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Mason to exercise his statutory right. Mason obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.

Whimple case:

Mr and Mrs. P Jones took over the lease of a one bedroom apartment in Whimple in March 2008. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in Whimple with 100 year plus lease were in the region of £233,200. The average ground rent payable was £60 billed quarterly. The lease finished on 14 August 2087. Given that there were 61 years remaining we approximated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of expenses.

Whimple case:

Mr Thomas Taylor was assigned a lease of a first floor apartment in Whimple in September 1999. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Comparative residencies in Whimple with a long lease were worth £171,800. The mid-range ground rent payable was £55 collected quarterly. The lease lapsed on 17 August 2076. Having 50 years remaining we calculated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus legals.