Main reasons to commence your Woodbridge lease extension

Why you should start your Woodbridge lease extension today:

Increase your lease and increase your Woodbridge property value

With a domestic leasehold property in Woodbridge, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Anyone in Woodbridge with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has under eighty years outstanding, under the relevant Act the landlord can calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.

Lending institutions will not loan monies with a short lease

The propensity since 2008 has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. Historically lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

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

Regardless of whether you are a tenant or a landlord in Woodbridge,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Woodbridge valuers.

Woodbridge Lease Extension Case Studies:

Theo, Woodbridge, Suffolk

Last October Theo, started to get close to the eighty-year threshold with the lease on his purpose- built flat in Woodbridge. In buying his home two decades ago, the unexpired term was of little interest. As luck would have it, he realised he needed to take action soon on Extending the lease. Theo was able to extend his lease just in the nick of time in June. Theo and the landlord subsequently settled on sum of £6,000 . If the lease had fallen to less than eighty years, the price would have escalated by at least £875.

Woodbridge case:

In 2010 we were approached by Mr Gabriel Parker who, having took over the lease of a ground floor apartment in Woodbridge in August 2000. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable flats in Woodbridge with an extended lease were worth £285,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease end date was in 2105. Taking into account 79 years remaining we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.

Woodbridge case:

In 2012 we were called by Ms Kayleigh Anderson who, having acquired a studio apartment in Woodbridge in January 2003. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable premises in Woodbridge with an extended lease were valued about £193,400. The average ground rent payable was £65 billed annually. The lease came to a finish in 2085. Taking into account 59 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus legals.