Why you should start your Winsford lease extension

Why you should start your Winsford lease extension today:

Increase your lease and increase your Winsford property value

As the the remaining lease term of a Winsford residential lease diminished so does its value and therefore the value of your property. If the residual term has, over 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Many flat owners in Winsford will qualify for this right; however a lawyer will be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold premises in Winsford with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Lending institutions may not loan monies with a short lease

The trend since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically lenders would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 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.

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

Regardless of whether you are a tenant or a freeholder in Winsford,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Winsford valuers.

Winsford Lease Extension Case Studies:

George, Winsford, Cheshire

In 2014 George, came precariously close to the 80-year threshold with the lease on his studio flat in Winsford. Having purchased his home 19 years previously, the lease term was of little concern. Luckily, he realised he would imminently be paying an inflated amount for Extending the lease. George extended the lease at the eleventh hour in August. George and the freeholder eventually settled on sum of £5,500 . If the lease had descended to less than eighty years, the premium would have gone up by a minimum £1,150.

Winsford case:

In 2010 we were e-mailed by Mr and Mrs. T Flores who, having acquired a purpose-built flat in Winsford in March 1995. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical homes in Winsford with a long lease were in the region of £275,000. The average amount of ground rent was £55 collected annually. The lease concluded on 28 June 2103. Considering the 77 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.

Winsford case:

In 2012 we were phoned by Ms Lydia Norbert who, having completed a one bedroom flat in Winsford in April 2007. The question was if we could approximate the price would be for a 90 year extension to my lease. Identical premises in Winsford with an extended lease were valued about £183,600. The mid-range ground rent payable was £65 collected yearly. The lease expired in 2083. Taking into account 57 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including fees.