Main reasons to start your Woodley lease extension

Why you should start your Woodley lease extension today:

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

As the the remaining lease term of a Woodley domestic lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of 125 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Many flat owners in Woodley will meet the qualifying criteria; however a lawyer should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease has roughly the same value as a freehold

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

Lending institutions may decide not to loan monies on a short lease

Lenders will not lend on short residential leases. You are likely to encounter problems if you need to sell your flat in Woodley if the unexpired term of your lease is under the criteria set by the majority of lenders. Different mortgage companies have different criteria but generally they are looking for a minimum remaining lease term of 65 years.

What makes us experts in Woodley lease extensions?

The conveyancing solicitors that we work with procure Woodley 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 lawyer we work with provide it.

Woodley Lease Extension Example Cases:

Tyler, Woodley, Berkshire

During the course of the last few months Tyler, started to get near to the 80-year mark with the lease on his garden apartment in Woodley. Having purchased his flat twenty years previously, the unexpired term was of no significance. Luckily, he became aware that he would soon be paying way over the odds for a lease extension. Tyler arranged for a lease extension just ahead of time last January. Tyler and the freeholder ultimately settled on the final figure of £6,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £900.

Woodley case:

In 2013 we were e-mailed by Ms Y Lambert who, having completed a basement apartment in Woodley in November 1996. The question was if we could approximate the premium would be for a ninety year lease extension. Comparable premises in Woodley with 100 year plus lease were worth £260,000. The average ground rent payable was £50 billed monthly. The lease ended in 2098. Given that there were 72 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.

Woodley case:

Last year we were called by Mr and Mrs. B Ramírez , who completed a basement flat in Woodley in July 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar homes in Woodley with 100 year plus lease were in the region of £261,600. The average ground rent payable was £60 billed yearly. The lease ended on 10 November 2078. Given that there were 52 years left we calculated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 exclusive of fees.