Why you should commence your Willingham lease extension

Top reasons for lease extension now:

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

Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Willingham. Inevitably, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Willingham have the legal entitlement to extend the lease for a further ninety years in accordance with statute. Do give due deliberation before delaying your Willingham lease extension. Holding off that expense now only increases the price you will eventually incur for a lease extension

An extended lease has roughly the same value as a freehold

Leasehold residencies in Willingham with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

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

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become concerned at around 75 years. This will cause difficulties when you need to sell or remortgage your property as it will be practically unmortgageable. Even though you might have no imminent intention to sell but when you do your purchaser will have to wait 2 years before being able to commence the legal procedures for an extension to the lease.

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

Irrespective of whether you are a tenant or a freeholder in Willingham,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Willingham valuers.

Willingham Lease Extension Case Summaries:

Milo, Willingham, Cambridgeshire

Last October Milo, started to get near to the eighty-year threshold with the lease on his basement flat in Willingham. In buying his property two decades ago, the lease term was of minimal significance. Thankfully, he realised he would soon be paying an inflated amount for Extending the lease. Milo extended the lease just ahead of time in April. Milo and the landlord who owned the flat above eventually settled on a premium of £6,000 . If the lease had fallen below eighty years, the figure would have gone up by at least £975.

Willingham case:

Last month we were approach by Mr and Mrs. P Edwards , who purchased a purpose-built apartment in Willingham in February 1999. The question was if we could estimate the premium could be to extend the lease by an additional years. Identical properties in Willingham with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 billed annually. The lease end date was on 23 March 2103. Having 77 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.

Willingham case:

In 2009 we were e-mailed by Mrs N Khan who, having moved into a purpose-built flat in Willingham in November 1999. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Similar homes in Willingham with an extended lease were in the region of £260,200. The average amount of ground rent was £65 invoiced every twelve months. The lease elapsed in 2092. Taking into account 66 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of legals.