Why you should commence your Whitefield lease extension

Why you should commence your Whitefield lease extension today:

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

As the length of the unexpired term of a Whitefield domestic lease lessens so does its value and therefore the value of your property. If the residual term has, beyond one hundred years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Whitefield will meet the qualifying criteria; that being said a lawyer should be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

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

It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lending institutions may not grant a mortgage with a short lease

Mortgage lenders have specific criteria when lending funds charged on leasehold property. Many will simply not lend at all once the residual lease term slips beneath a specified unexpired lease term. Many Mortgage lenders will not regard property with an unexpired below 75 years suitable security. In addition to impacting your ability to sell, it is also relevant where you are wanting to refinance your Whitefield property.

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

Regardless of whether you are a tenant or a landlord in Whitefield,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Whitefield valuers.

Whitefield Lease Extension Case Studies:

Matthew, Whitefield, Greater Manchester

During the course of the last few months Matthew, came very near to the 80-year threshold with the lease on his basement apartment in Whitefield. Having purchased his home 18 years ago, the length of the lease was of little significance. Luckily, he noticed he needed to take steps soon on a lease extension. Matthew arranged for a lease extension just ahead of time in August. Matthew and the freeholder subsequently agreed on an amount of £5,500 . If the lease had dropped lower than eighty years, the sum would have gone up by at least £1,150.

Whitefield case:

Mr and Mrs. D Richardson completed a first floor flat in Whitefield in September 1999. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical homes in Whitefield with 100 year plus lease were in the region of £208,600. The average amount of ground rent was £60 invoiced every twelve months. The lease elapsed on 13 July 2083. Considering the 57 years remaining we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including costs.

Whitefield case:

Last Christmas we were called by Dr Freya Wilson , who acquired a basement apartment in Whitefield in July 2006. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Whitefield with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 collected quarterly. The lease ended on 27 January 2103. Having 77 years unexpired we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.