Why you should start your Wimborne Minster lease extension

Top reasons for lease extension now:

Increase your lease and increase your Wimborne Minster property value

The nearer a domestic lease in Wimborne Minster nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner than later. Many flat owners in Wimborne Minster will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.

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

It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to lend with a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past banks would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

Engaging our service will provide you enhanced control over the value of your Wimborne Minster leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Wimborne Minster Lease Extension Case Summaries:

Jennifer, Wimborne Minster, Dorset,

Off the back of lengthy discussions with the landlord of her basement flat in Wimborne Minster, Jennifer initiated the lease extension process as the 80 year threshold was fast approaching. The legal work was concluded in November 2013. The freeholder’s fees were restricted to slightly above 500 GBP.

Wimborne Minster case:

Last September we were e-mailed by Mr O Parker , who was assigned a lease of a one bedroom flat in Wimborne Minster in June 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical properties in Wimborne Minster with 100 year plus lease were valued about £223,400. The average ground rent payable was £60 collected annually. The lease came to a finish on 3 April 2085. Given that there were 59 years as a residual term we calculated the premium to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of fees.

Wimborne Minster case:

In 2009 we were contacted by Mr K Gunderson who, having was assigned a lease of a one bedroom apartment in Wimborne Minster in March 2010. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative homes in Wimborne Minster with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced yearly. The lease came to a finish on 7 January 2105. Taking into account 79 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.