Main reasons to start your Woodbridge lease extension

Top reasons for lease extension now:

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

The market value of a leasehold property in Woodbridge is impacted by how long the lease has left to run. If it is near to or less than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised prior to the 80 year mark. Leasehold Reform legislation enables Woodbridge qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold premises in Woodbridge with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may decide not to finance a property on a short lease

The propensity since the credit crunch 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 unexpired lease term required by mortgage companies has increased. In the past lenders were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in Woodbridge lease extensions?

The conveyancers that we work with undertake Woodbridge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Woodbridge Lease Extension Example Cases:

Charlie, Woodbridge, Suffolk

In 2014 Charlie, came critically close to the eighty-year mark with the lease on his two bedroom flat in Woodbridge. In buying his property two decades ago, the unexpired term was of little significance. Fortunately, he noticed he would soon be paying an escalated premium for Extending the lease. Charlie arranged for a lease extension just under the wire in September. Charlie and the landlord subsequently settled on a premium of £5,000 . If the lease had dipped below eighty years, the figure would have become more costly by a minimum £850.

Woodbridge case:

Last Spring we were called by Ms Jade Turner , who completed a newly refurbished apartment in Woodbridge in May 2008. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Identical residencies in Woodbridge with a long lease were worth £200,800. The average ground rent payable was £65 collected annually. The lease elapsed in 2086. Given that there were 60 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of costs.

Woodbridge case:

Dr R Richardson was assigned a lease of a one bedroom apartment in Woodbridge in February 2001. The question was if we could approximate the price would be to prolong the lease by ninety years. Comparative properties in Woodbridge with a long lease were worth £255,000. The mid-range ground rent payable was £50 invoiced annually. The lease finished on 20 May 2097. Taking into account 71 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.