Why you should start your Willen lease extension

Top reasons for lease extension now:

Increase your lease and increase your Willen property value

Willen 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 your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Willen residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Willen you would be well advised to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

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

Leasehold properties in Willen with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.

Banks and Building Societies may not issue a mortgage with a short lease

Lending institutions have set criteria when lending funds charged on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term goes lower than a specified unexpired lease term. Many Mortgage lenders will not consider property with a remaining term of less than seventy years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are wanting to remortgage your Willen property.

Why use us for your lease extension in Willen?

Irrespective of whether you are a tenant or a landlord in Willen,the lease extension experts 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 Willen valuers.

Willen Lease Extension Case Summaries:

Freddie, Willen, Milton Keynes

In recent months Freddie, came critically near to the eighty-year threshold with the lease on his garden apartment in Willen. In buying his property 19 years ago, the unexpired term was of little bearing. Fortunately, he realised he needed to take steps soon on Extending the lease. Freddie extended the lease just under the wire last January. Freddie and the freeholder via the management company eventually settled on sum of £6,000 . If the lease had slipped below 80 years, the figure would have gone up by a minimum £875.

Willen case:

Ms C Wilson moved into a garden apartment in Willen in July 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Willen with 100 year plus lease were valued around £210,000. The average ground rent payable was £50 invoiced yearly. The lease lapsed on 17 July 2106. Having 80 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.

Willen case:

Mr and Mrs. D Simon took over the lease of a garden flat in Willen in September 1999. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar homes in Willen with a long lease were valued about £275,000. The mid-range ground rent payable was £45 collected per annum. The lease came to a finish in 2095. Given that there were 69 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.