Why you should start your Whitstable lease extension

Top reasons for lease extension now:

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

Whitstable leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Whitstable enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Whitstable you must check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold residencies in Whitstable with over 100 years unexpired 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.

Lending institutions may not finance a property with a short lease

Most mortgage lenders will not lend on a lease with under seventy years remaining - although this varies from lender to lender. A purchaser will undoubtedly find it difficult in obtaining a mortgage and this will result in your Whitstable property being difficult to dispose of or to obtain finance on.

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

Lease extensions in Whitstable can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Whitstable lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Whitstable Lease Extension Example Cases:

Ethan, Whitstable, Kent,

Ethan was the the leasehold proprietor of a conversion apartment in Whitstable on the market with a lease of a little over 59 years remaining. Ethan informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Ethan to invoke his statutory right. Ethan procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.

Whitstable case:

Mrs W White was assigned a lease of a ground floor apartment in Whitstable in October 1999. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Comparative properties in Whitstable with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease came to a finish in 2101. Having 75 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.

Whitstable case:

Last Winter we were called by Mr Jackson Garcia , who owned a ground floor apartment in Whitstable in May 2003. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical residencies in Whitstable with 100 year plus lease were valued around £173,800. The average ground rent payable was £60 collected per annum. The lease finished on 23 April 2081. Taking into account 55 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus costs.