Why you should start your Windmill Hill lease extension

Main reasons to start your Windmill Hill lease extension today:

A Windmill Hill leasehold property depreciates with the years remaining on the lease.

It’s a harsh truth that a Windmill Hill residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Windmill Hill property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be payable. The majority of flat owners in Windmill Hill will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.

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

Leasehold properties in Windmill Hill with over one hundred 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 upside in buying the reversionary interest unless savings on ground rent and service charges merit it.

Lenders will not issue a mortgage on a short lease

The trend since over the last decade has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has meant the unexpired lease term required by mortgage companies has increased. In the past banks would lend on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Windmill Hill?

Lease extensions in Windmill Hill can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Windmill Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Windmill Hill Lease Extension Example Cases:

Stanley, Windmill Hill, Bristol,

Stanley owned a 2 bedroom apartment in Windmill Hill on the market with a lease of a little over 59 years remaining. Stanley on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Stanley to exercise his statutory right. Stanley obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.

Windmill Hill case:

In 2012 we were called by Mrs K Smith who, having purchased a basement flat in Windmill Hill in April 2002. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar premises in Windmill Hill with an extended lease were worth £245,000. The average ground rent payable was £50 collected yearly. The lease ran out in 2094. Having 68 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.

Windmill Hill case:

Last Winter we were contacted by Ms Caitlin Fournier , who completed a garden flat in Windmill Hill in November 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable flats in Windmill Hill with a long lease were worth £285,000. The mid-range ground rent payable was £55 billed quarterly. The lease elapsed on 4 January 2105. Taking into account 79 years left we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.