Top reasons for Winchelsea lease extension

Top reasons for lease extension now:

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

The value of Winchelsea leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the unexpired lease term is less than eighty years

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

Leasehold premises in Winchelsea with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders will not grant a mortgage with a short lease

Most high street banks are tightening their criteria and a meaningful number now expect flats to have a minimum of sixty if not seventy years remaining at the expiry of the mortgage. Considering many flats in Winchelsea were created in the fifties, sixties and seventies as a result many now need to be extended if they wish to get a mortgage.

What makes us experts in Winchelsea lease extensions?

Regardless of whether you are a tenant or a freeholder in Winchelsea,the lease extension solicitors that we work with will always be prepared 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:

Sam, Winchelsea, East Sussex

14 months ago Sam, started to get close to the 80-year mark with the lease on his basement apartment in Winchelsea. Having bought his property twenty years previously, the unexpired term was of little relevance. Luckily, he noticed he would imminently be paying an escalated premium for a lease extension. Sam arranged for a lease extension just under the wire in May. Sam and the landlord in the end agreed on the final figure of £5,500 . If the lease had dropped lower than eighty years, the premium would have escalated by at least £1,150.

Winchelsea case:

Last Spring we were contacted by Ms Isabella Mercier , who took over the lease of a purpose-built apartment in Winchelsea in April 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in Winchelsea with 100 year plus lease were valued around £205,000. The mid-range ground rent payable was £50 billed quarterly. The lease concluded in 2104. Given that there were 78 years left we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.

Winchelsea case:

Dr Hunter Vincent moved into a basement apartment in Winchelsea in March 2003. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparative residencies in Winchelsea with a long lease were valued about £267,600. The mid-range ground rent payable was £65 billed quarterly. The lease expired on 4 May 2093. Considering the 67 years remaining we estimated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 plus fees.