Top reasons for Whittlesey lease extension

Why you should start your Whittlesey lease extension today:

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

Whittlesey leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Whittlesey residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Whittlesey you really ought to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

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

Leasehold properties in Whittlesey with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may not issue a mortgage with a short lease

Many banks and building societies will not lend on a lease with under 70 years left to run - although this varies between mortgage companies. A buyer will no doubt encounter difficulties in obtaining a mortgage and this could result in your Whittlesey property becoming difficult to dispose of or remortgage.

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

The conveyancing solicitors that we work with procure Whittlesey 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.

Whittlesey Lease Extension Case Studies:

Olivia, Whittlesey, Cambridgeshire,

Off the back of lengthy correspondence with the freeholder of her one bedroom flat in Whittlesey, Olivia started the lease extension process just as the lease was nearing the crucial eighty-year mark. The lease extension was finalised in November 2006. The landlord’s costs were negotiated to under 650 pounds.

Whittlesey case:

In 2014 we were contacted by Mr and Mrs. H Davis who, having purchased a first floor apartment in Whittlesey in May 2004. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparable flats in Whittlesey with 100 year plus lease were worth £191,400. The mid-range ground rent payable was £55 billed per annum. The lease finished in 2080. Considering the 54 years outstanding we calculated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 plus expenses.

Whittlesey case:

Mr Evan Miller was assigned a lease of a ground floor apartment in Whittlesey in February 1999. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative properties in Whittlesey with an extended lease were valued about £295,000. The average amount of ground rent was £45 invoiced every twelve months. The lease lapsed in 2100. Taking into account 74 years unexpired we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.