Top reasons for Witney lease extension

Top reasons for lease extension now:

Increase your lease and increase your Witney property value

As the length of the unexpired term of a Witney residential lease diminished so does its value and therefore the value of your property. Where the residual term has, more than 125 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner than later. Many flat owners in Witney will qualify for this right; nevertheless a conveyancer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Witney with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lenders will not lend with a short lease

The trend since 2008 has been for banks to tighten lending criteria across the board - this has extended to the property over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically banks would lend on a lease with twenty 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 standard.

What makes us experts in Witney lease extensions?

Using our service will provide you better control over the value of your Witney leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Witney Lease Extension Case Studies:

Shannon, Witney, Oxfordshire,

After protracted negotiations with the landlord of her garden apartment in Witney, Shannon started the lease extension process as the eighty year deadline was quickly advancing. The transaction was concluded in February 2009. The landlord’s fees were kept to an absolute minimum.

Witney case:

Dr V Pérez owned a ground floor flat in Witney in April 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparable residencies in Witney with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease expired in 2097. Having 71 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.

Witney case:

Mr and Mrs. C Taylor owned a ground floor flat in Witney in February 2012. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Comparable homes in Witney with 100 year plus lease were valued around £225,800. The average amount of ground rent was £60 billed per annum. The lease ran out on 28 August 2086. Given that there were 60 years unexpired we calculated the premium to the landlord for the lease extension to be between £23,800 and £27,400 not including legals.