Top reasons for Whitby lease extension

Top reasons for lease extension now:

Increase your lease and increase your Whitby property value

The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Whitby have the right to extend the lease for an additional 90 years under statute. Do give careful consideration before delaying your Whitby lease extension. Shelving the costs now simply increases the premium you will eventually be required to pay for a lease extension.

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

Leasehold premises in Whitby with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.

Lenders will not grant a mortgage on a short lease

Banks and Building Societies have specific criteria when loaning funds secured on leasehold property. Some will simply refrain from lending at all once the remaining lease term falls under a specified unexpired lease term. Many Lending institutions will not consider property with a remaining below seventy years as acceptable security. In addition to impacting your ability to sell, it is also relevant if you are wanting to remortgage your Whitby property.

What makes us experts in Whitby lease extensions?

The lawyers that we work with procure Whitby 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 lawyer we work with provide it.

Whitby Lease Extension Case Studies:

Cameron, Whitby, North Yorkshire

In recent months Cameron, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Whitby. In buying his home twenty years ago, the length of the lease was of little importance. Thankfully, he noticed he would soon be paying an escalated premium for a lease extension. Cameron arranged for a lease extension at the eleventh hour last May. Cameron and the freeholder eventually agreed on the final figure of £5,000 . If he not met the deadline, the premium would have escalated by at least £850.

Whitby case:

Dr Amelia Gunderson completed a garden flat in Whitby in November 2012. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical premises in Whitby with an extended lease were worth £191,000. The average ground rent payable was £65 collected quarterly. The lease ended in 2084. Considering the 58 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 plus legals.

Whitby case:

Last Autumn we were approach by Mr and Mrs. N Ramírez , who acquired a newly refurbished flat in Whitby in July 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Comparable premises in Whitby with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease expired in 2095. Considering the 69 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.