Main reasons to commence your Winchelsea lease extension

Top reasons for lease extension now:

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

There is no doubt about it a leasehold property in Winchelsea is a wasting asset as a result of the diminishing lease term. If the lease has, over 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than eighty 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 reason why you should consider extending sooner rather than later. Most flat owners in Winchelsea will meet the qualifying criteria; however a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

Leasehold residencies in Winchelsea with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.

Lending institutions may decide not to issue a mortgage with a short lease

Lenders do not lend on short residential leases. You are likely to encounter difficulties if you need to sell your flat in Winchelsea if the remaining term of your lease is less than the criteria set by most mortgage companies. Different lenders have different criteria but on the whole theyrequire an unexpired term of at least seventy years.

What makes us experts in Winchelsea lease extensions?

The conveyancing solicitors that we work with procure Winchelsea lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Winchelsea Lease Extension Example Cases:

Riley, Winchelsea, East Sussex

In 2014 Riley, came seriously near to the eighty-year threshold with the lease on his two bedroom flat in Winchelsea. Having purchased his property 19 years ago, the length of the lease was of little relevance. by good luck, he noticed he would imminently be paying way over the odds for a lease extension. Riley arranged for a lease extension at the eleventh hour last May. Riley and the landlord who owned the flat above subsequently settled on the final figure of £5,000 . If he not met the deadline, the premium would have gone up by at least £900.

Winchelsea case:

Last Autumn we were called by Mr and Mrs. D Alexander , who owned a first floor flat in Winchelsea in July 2010. The question was if we could approximate the premium could be to prolong the lease by ninety years. Identical premises in Winchelsea with an extended lease were valued around £223,400. The average ground rent payable was £60 collected quarterly. The lease ended in 2085. Taking into account 59 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 plus professional charges.

Winchelsea case:

In 2009 we were e-mailed by Dr P Murphy who, having owned a recently refurbished flat in Winchelsea in April 2001. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative residencies in Winchelsea with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 collected quarterly. The lease expired in 2105. Having 79 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.