Main reasons to commence your Winchelsea lease extension

Top reasons for lease extension now:

Increase your lease and increase your Winchelsea property value

The market value of Winchelsea leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the remaining term is below than eighty years

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

It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.

Lenders will not loan monies with a short lease

The propensity since over the last decade has been for banks to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically lenders were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

Engaging our service gives you better control over the value of your Winchelsea leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Winchelsea Lease Extension Case Studies:

Aarav, Winchelsea, East Sussex

During the course of the last few months Aarav, started to get near to the 80-year threshold with the lease on his purpose- built flat in Winchelsea. Having purchased his flat 19 years previously, the unexpired term was of minimal significance. Thankfully, he recognised he needed to take action soon on a lease extension. Aarav extended the lease just ahead of time in July. Aarav and the freeholder eventually settled on a premium of £6,000 . If he failed to meet the deadline, the sum would have increased by a minimum £1,075.

Winchelsea case:

In 2010 we were phoned by Mr and Mrs. H Harris who, having completed a ground floor apartment in Winchelsea in February 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Comparative premises in Winchelsea with an extended lease were worth £198,800. The average amount of ground rent was £55 billed monthly. The lease ended on 19 April 2081. Given that there were 55 years remaining we calculated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 not including expenses.

Winchelsea case:

Dr Liam Davis moved into a purpose-built apartment in Winchelsea in March 1996. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical residencies in Winchelsea with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 collected quarterly. The lease terminated in 2101. Considering the 75 years remaining we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.