Main reasons to start your Wilberfoss lease extension

Why you should start your Wilberfoss lease extension today:

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

The market value of a leasehold property in Wilberfoss depends on how long the lease has remaining. If it is near to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that formalities can be finalised in advance of the 80 year cut off point. Statute enables Wilberfoss qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

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

Leasehold residencies in Wilberfoss with in excess of 100 years remaining 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions may decide not to finance a property with a short lease

Almost all banks and building societies require a lengthy amount of time remaining on any leasehold property before they will consider lending on it. Regardless of whether you require a mortgage, you should keep in mind that it is probable that someone wanting to purchase your property in the future might well do, so in the event that they can't get a mortgage, then the financial worth of your property could suffer. In the last decade many mortgage lenders have increased the required minimum lease length that they are prepared to lend on

Why use us for your lease extension in Wilberfoss?

The conveyancing solicitors that we work with handle Wilberfoss 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.

Wilberfoss Lease Extension Case Studies:

Kayleigh, Wilberfoss, East Yorkshire,

After unsuccessful negotiations with the freeholder of her garden flat in Wilberfoss, Kayleigh initiated the lease extension process just as her lease was coming close to the crucial eighty-year mark. The legal work was finalised in August 2008. The landlord’s charges were kept to an absolute minimum.

Wilberfoss case:

Dr I Nguyen purchased a basement flat in Wilberfoss in April 1995. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparable residencies in Wilberfoss with an extended lease were worth £203,200. The mid-range amount of ground rent was £65 collected yearly. The lease end date was on 4 April 2087. Given that there were 61 years left we approximated the premium to the landlord for the lease extension to be within £19,000 and £22,000 not including professional charges.

Wilberfoss case:

Last Christmas we were approach by Dr S Ricardo , who acquired a purpose-built flat in Wilberfoss in May 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Wilberfoss with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 collected monthly. The lease finished on 16 July 2098. Given that there were 72 years remaining we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.