Top reasons for Winchelsea lease extension

Main reasons to start your Winchelsea lease extension today:

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

With a domestic leasehold premises in Winchelsea, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Leasehold owners in Winchelsea with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. Once the lease term has under eighty years left, under the relevant legislation the landlord can calculate and charge a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.

Winchelsea property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Mortgage lenders may decide not to loan monies with a short lease

Most mortgage lenders have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly under seventy years as they are regarded as deficient for lending purposes.

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

Regardless of whether you are a tenant or a freeholder in Winchelsea,the lease extension lawyers 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 Winchelsea valuers.

Winchelsea Lease Extension Case Summaries:

Louise, Winchelsea, East Sussex,

Following unsuccessful negotiations with the freeholder of her garden apartment in Winchelsea, Louise commenced the lease extension process as the eighty year threshold was fast coming. The legal work was concluded in July 2008. The freeholder’s costs were negotiated to slightly above 700 GBP.

Winchelsea case:

Last Autumn we were contacted by Mr U Bonnet , who bought a studio apartment in Winchelsea in October 1997. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparative flats in Winchelsea with a long lease were valued around £174,200. The mid-range amount of ground rent was £55 billed yearly. The lease lapsed on 3 August 2077. Taking into account 51 years outstanding we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including costs.

Winchelsea case:

In 2014 we were contacted by Mr Jude Nguyen who, having owned a one bedroom apartment in Winchelsea in March 2009. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable properties in Winchelsea with 100 year plus lease were worth £285,000. The average ground rent payable was £45 collected annually. The lease concluded on 4 March 2097. Having 71 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.