Top reasons for Wokingham lease extension

Top reasons for lease extension now:

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

Wokingham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Wokingham tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Wokingham you would be well advised to investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

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

Leasehold properties in Wokingham with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders will not loan monies on a short lease

Mortgage companies are making their criteria more stringent and many now want flats to have a minimum of sixty if not seventy years remaining once the mortgage has expired. As plenty of flats in Wokingham were built in the 1950s, 1960s and 1970s this means many now need to be extended if they if they are to be mortgageable.

What makes us experts in Wokingham lease extensions?

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

Wokingham Lease Extension Example Cases:

Francesca, Wokingham, Berkshire,

In the wake of eight months of protracted discussions with the landlord of her leasehold apartment in Wokingham, Francesca started the lease extension process just as the lease was coming close to the critical 80-year threshold. The lease extension was finalised in October 2014. The landlord’s fees were kept to an absolute minimum.

Wokingham case:

Ms Paige Vincent bought a studio flat in Wokingham in April 2009. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Comparable premises in Wokingham with 100 year plus lease were worth £285,000. The average ground rent payable was £45 invoiced quarterly. The lease ended in 2097. Given that there were 71 years outstanding we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.

Wokingham case:

In 2011 we were contacted by Mr D Cook who, having was assigned a lease of a garden flat in Wokingham in October 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparative properties in Wokingham with a long lease were in the region of £225,800. The mid-range ground rent payable was £60 billed monthly. The lease expired in 2086. Taking into account 60 years left we approximated the premium to the landlord to extend the lease to be within £24,700 and £28,600 not including expenses.