Why you should start your Wombourne lease extension

Top reasons for lease extension now:

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

For those whose Wombourne home is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Lenders may not grant a mortgage on a short lease

Mortgage companies are really restricting their approach as regards to homes in Wombourne with short leases. For instance you might discover that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you needed to sell, your remaining options would be to find a cash purchaser, or hope for the best at auction thus reducing your market.

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

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

Wombourne Lease Extension Case Studies:

Jessica, Wombourne, Staffordshire,

Following protracted negotiations with the landlord of her garden flat in Wombourne, Jessica commenced the lease extension process just as her lease was approaching the crucial 80-year mark. The lease extension completed in July 2014. The landlord’s fees were kept to an absolute minimum.

Wombourne case:

Last March we were contacted by Dr Riley Wilson , who was assigned a lease of a one bedroom flat in Wombourne in June 2010. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Similar homes in Wombourne with a long lease were worth £250,000. The average amount of ground rent was £50 invoiced annually. The lease ended on 11 October 2095. Given that there were 69 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.

Wombourne case:

Dr M Miller bought a first floor apartment in Wombourne in August 2003. We are asked if we could estimate the price would be for a 90 year lease extension. Comparative premises in Wombourne with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease lapsed in 2106. Given that there were 80 years outstanding we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.