Why you should start your Whyteleafe lease extension

Top reasons for lease extension now:

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

It’s an underpublicised certainty that a Whyteleafe residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Whyteleafe property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term falls below 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 the property Most flat owners in Whyteleafe will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.

An extended lease is almost the same value as a freehold

Leasehold premises in Whyteleafe with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.

Lenders will not lend on a short lease

Most mortgage lenders have tightened lending criteria in the last ten years and borrowers are encountering difficulties in arranging finance or re-mortgage against property with shorter lease terms, particularly under seventy years as they are regarded as inadequate for lending purposes.

Why use us for your lease extension in Whyteleafe?

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

Whyteleafe Lease Extension Case Studies:

Jude, Whyteleafe, Surrey

Half a year ago Jude, came seriously near to the eighty-year threshold with the lease on his leasehold apartment in Whyteleafe. Having bought his flat twenty years ago, the unexpired term was of little relevance. As luck would have it, he became aware that he would imminently be paying way over the odds for a lease extension. Jude was able to extend his lease at the eleventh hour in April. Jude and the landlord ultimately settled on a premium of £6,000 . If the lease had dipped lower than 80 years, the amount would have increased by at least £1,000.

Whyteleafe case:

In 2009 we were approached by Mr and Mrs. J Lewis who, having acquired a studio flat in Whyteleafe in September 2012. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparable premises in Whyteleafe with a long lease were worth £240,600. The average amount of ground rent was £65 billed per annum. The lease came to a finish on 8 November 2088. Taking into account 62 years as a residual term we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus fees.