Top reasons for Whissendine lease extension

Why you should commence your Whissendine lease extension today:

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

Whissendine leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for the 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 Whissendine will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some cases you may not qualify. There are also strict timetables and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.

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

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies may decide not to lend with a short lease

The propensity since 2008 has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by lenders has increased. Historically lenders were content with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Whissendine lease extensions?

Regardless of whether you are a tenant or a freeholder in Whissendine,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Whissendine valuers.

Whissendine Lease Extension Case Summaries:

Jackson, Whissendine, Rutland

During the course of the last few months Jackson, came very near to the eighty-year threshold with the lease on his leasehold flat in Whissendine. Having purchased his home 18 years ago, the length of the lease was of little bearing. Fortunately, he realised he would imminently be paying an inflated amount for a lease extension. Jackson was able to extend his lease just under the wire in January. Jackson and the freeholder ultimately settled on an amount of £5,500 . If he failed to meet the deadline, the amount would have escalated by a minimum £1,100.

Whissendine case:

Mr O González took over the lease of a basement flat in Whissendine in September 2009. The question was if we could estimate the premium would be for a 90 year lease extension. Comparative flats in Whissendine with 100 year plus lease were valued about £295,000. The average amount of ground rent was £45 invoiced quarterly. The lease ended in 2101. Having 75 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.

Whissendine case:

Dr Muhammad Ricardo moved into a one bedroom flat in Whissendine in September 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable properties in Whissendine with a long lease were in the region of £250,400. The mid-range amount of ground rent was £65 collected annually. The lease end date was on 12 April 2090. Having 64 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of costs.