Top reasons for Woking lease extension

Top reasons for lease extension now:

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

Unfortunately that a Woking residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Woking property prices.Once your lease gets to 85ish years, you should 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 falls under eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Woking will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.

An extended lease has roughly the same value as a freehold

Leasehold properties in Woking with in excess of 100 years unexpired on the lease are sometimes referred to as ‘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 purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies will not loan monies with a short lease

Banks and building societies are making their criteria more stringent and a meaningful number now want flats to have at least sixty if not seventy years left at the expiry of the mortgage. Considering plenty of flats in Woking were created in the fifties, sixties and seventies this means many now require lease extensions if they wish to obtain a mortgage.

What makes us experts in Woking lease extensions?

Irrespective of whether you are a tenant or a freeholder in Woking,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 in-depth market knowledge and the close ties they enjoy with Woking valuers.

Woking Lease Extension Case Summaries:

Stanley, Woking, Surrey

16 months ago Stanley, came critically near to the eighty-year threshold with the lease on his first floor flat in Woking. In buying his property two decades ago, the unexpired term was of no concern. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Stanley extended the lease just in the nick of time last September. Stanley and the freeholder ultimately agreed on a premium of £6,000 . If he had missed the deadline, the price would have become more exhorbitant by a minimum £1,025.

Woking case:

Mr and Mrs. R Mercier purchased a ground floor flat in Woking in February 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Identical premises in Woking with an extended lease were worth £205,000. The mid-range ground rent payable was £50 invoiced yearly. The lease ended in 2105. Taking into account 79 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.

Woking case:

Last Winter we were phoned by Mr and Mrs. J Ward , who completed a garden apartment in Woking in August 2001. The question was if we could approximate the premium could be for a 90 year lease extension. Comparable properties in Woking with an extended lease were valued about £275,000. The mid-range amount of ground rent was £65 invoiced per annum. The lease ended on 7 May 2094. Having 68 years remaining we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.