Why you should commence your Whitwick lease extension

Main reasons to commence your Whitwick lease extension today:

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

Whitwick 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 the lease gets more expensive. It is the case that most Whitwick tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Whitwick you would be well advised to investigate if your lease has between seventy and 90 years left. There are good reasons why a Whitwick flat owner with a lease having around eighty years left should take action to make sure that a lease extension is actioned without delay

Whitwick property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Whitwick with in excess of one hundred years left on the lease are sometimes 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 freehold unless savings on ground rent and service charges warrant it.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Lenders do not like short residential leases. You are likely to experience problems if you want to sell your flat in Whitwick if the unexpired term of your lease is under the criteria set by the majority of lenders. Different mortgage companies have different requirements but in the main theyrequire a minimum remaining lease term of 65 years.

Why use us for your lease extension in Whitwick?

Regardless of whether you are a tenant or a freeholder in Whitwick,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 experience and the close ties they enjoy with Whitwick valuers.

Whitwick Lease Extension Case Studies:

Dexter, Whitwick, Leicestershire

Two years ago Dexter, started to get close to the 80-year mark with the lease on his one bedroom apartment in Whitwick. In buying his home two decades ago, the lease term was of minimal bearing. Thankfully, he recognised he would imminently be paying an inflated amount for a lease extension. Dexter was able to extend his lease just ahead of time last January. Dexter and the landlord in the end agreed on the final figure of £6,000 . If the lease had dipped to less than eighty years, the sum would have escalated by a minimum £1,000.

Whitwick case:

Mr H Cox acquired a one bedroom apartment in Whitwick in August 2000. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative residencies in Whitwick with an extended lease were worth £285,000. The mid-range ground rent payable was £55 collected yearly. The lease ran out on 27 June 2105. Taking into account 79 years as a residual term we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.

Whitwick case:

Last Winter we were contacted by Mrs V Johnson , who purchased a first floor flat in Whitwick in June 2000. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable properties in Whitwick with an extended lease were worth £193,400. The average amount of ground rent was £65 billed per annum. The lease finished on 15 September 2085. Considering the 59 years outstanding we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus legals.