Main reasons to start your Wimborne Minster lease extension

Main reasons to start your Wimborne Minster lease extension today:

Increase your lease and increase your Wimborne Minster property value

The market value of a leasehold property in Wimborne Minster is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension before buying. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that all matters can be concluded ahead of the eighty year mark. Statute entitles Wimborne Minster qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold properties in Wimborne Minster 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.

Lenders will not grant a mortgage with a short lease

Lending institutions have specific criteria when loaning monies secured on leasehold property. Some will simply not lend at all once an unexpired lease term falls beneath a certain unexpired lease term. Many Banks and Building Societies 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 intending to remortgage your Wimborne Minster home.

What makes us experts in Wimborne Minster lease extensions?

Using our service will provide you enhanced control over the value of your Wimborne Minster leasehold, as your property will be more valuable and marketable 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 Example Cases:

Aiden, Wimborne Minster, Dorset,

Aiden owned a studio flat in Wimborne Minster being marketed with a lease of just over 59 years outstanding. Aiden informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Aiden to exercise his statutory right. Aiden procured expert advice and secured an acceptable resolution informally and readily saleable.

Wimborne Minster case:

Dr H Campbell completed a basement flat in Wimborne Minster in May 1996. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical residencies in Wimborne Minster with a long lease were valued about £300,000. The average amount of ground rent was £50 billed quarterly. The lease finished in 2101. Given that there were 75 years remaining we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.

Wimborne Minster case:

Last Christmas we were e-mailed by Mr and Mrs. N Thomas , who moved into a basement apartment in Wimborne Minster in September 1995. We are asked if we could approximate the price could be for a ninety year extension to my lease. Identical residencies in Wimborne Minster with a long lease were in the region of £250,400. The average ground rent payable was £65 collected per annum. The lease concluded in 2090. Having 64 years unexpired we estimated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of fees.