Why you should start your Whiteley lease extension

Top reasons for lease extension now:

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

Whiteley leases on residential deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Whiteley will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and procedures to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.

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

Leasehold premises in Whiteley with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions may decide not to loan monies on a short lease

Many banks and building societies insist on a lengthy amount of time remaining on any leasehold residence before they will consider lending on it. Even if you don't need a mortgage, you should keep in mind that it is likely that someone wishing to purchase your property in the future might well do, so if they are not able to obtain a mortgage, then the market price of the property will likely be adversely impacted. In the last decade many mortgage lenders have increased the required minimum lease length that they are prepared to lend on

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

The conveyancers that we work with handle Whiteley 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 conveyancer we work with provide it.

Whiteley Lease Extension Case Summaries:

Ryan, Whiteley, Hampshire

Last Christmas Ryan, came seriously close to the eighty-year mark with the lease on his studio apartment in Whiteley. In buying his home twenty years previously, the unexpired term was of minimal relevance. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Ryan was able to extend his lease just under the wire in September. Ryan and the landlord subsequently settled on the final figure of £6,000 . If he had missed the deadline, the price would have gone up by at least £925.

Whiteley case:

Last Summer we were phoned by Mr and Mrs. U Martínez , who bought a basement apartment in Whiteley in January 2000. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Whiteley with a long lease were valued around £235,200. The average ground rent payable was £45 invoiced per annum. The lease termination date was in 2092. Considering the 66 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.

Whiteley case:

Mr Charlie Lewis was assigned a lease of a one bedroom flat in Whiteley in June 1999. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative flats in Whiteley with 100 year plus lease were in the region of £275,000. The average ground rent payable was £55 invoiced quarterly. The lease expired on 15 June 2103. Considering the 77 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.