Why you should start your Wolstanton lease extension

Why you should commence your Wolstanton lease extension today:

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

The market value of a leasehold property in Wolstanton depends on how long the lease has left to run. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that a lease extension can be addressed well before the 80 year threshold. Leasehold Reform legislation enables Wolstanton qualifying lessees to an additional term of 90 years over and above the unexpired term, at a nominal rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

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

It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not issue a mortgage on a short lease

Almost all banks and building societies insist on a lengthy amount of time remaining on a leasehold property before they will contemplate it as adequate security. Even if you don't need a mortgage, you should keep in mind that it is reasonable to assume that someone wishing to buy your property in the future might well do, so in the event that they can't secure a mortgage, then the market price of the property will likely suffer. In the last decade most banks and building societies have increased the required minimum lease length that they are prepared to accept

What makes us experts in Wolstanton lease extensions?

Retaining our service gives you increased control over the value of your Wolstanton leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Wolstanton Lease Extension Example Cases:

Leo, Wolstanton, Staffordshire,

Leo was the the leasehold owner of a 2 bedroom apartment in Wolstanton being marketed with a lease of a few days over fifty eight years unexpired. Leo on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Leo to exercise his statutory right. Leo procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.

Wolstanton case:

In 2010 we were e-mailed by Dr Y Murphy who, having bought a one bedroom flat in Wolstanton in January 1998. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable properties in Wolstanton with a long lease were worth £189,000. The average ground rent payable was £55 billed every twelve months. The lease lapsed in 2079. Given that there were 53 years left we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including legals.

Wolstanton case:

In 2010 we were e-mailed by Mr and Mrs. O Ward who, having acquired a studio apartment in Wolstanton in August 1999. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Wolstanton with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed yearly. The lease expired in 2099. Taking into account 73 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.