Why you should start your Wool lease extension

Top reasons for lease extension now:

Increase your lease and increase your Wool property value

The market value of Wool leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the remaining term is less than eighty years

Wool property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Wool with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders may not loan monies with a short lease

Many banks and building societies will not grant a mortgage on a lease with less than 70 years left to run - although this varies between mortgage companies. A buyer will undoubtedly find it difficult in obtaining a mortgage and this could result in your Wool property becoming difficult to sell or remortgage.

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

Engaging our service will provide you better control over the value of your Wool leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Wool Lease Extension Case Studies:

Omar, Wool, Dorset,

Omar was the the leasehold owner of a conversion flat in Wool on the market with a lease of a little over 61 years left. Omar informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Omar to invoke his statutory right. Omar procured expert legal guidance and secured satisfactory resolution informally and readily saleable.

Wool case:

Dr W Torres completed a first floor apartment in Wool in September 2004. The question was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparative residencies in Wool with a long lease were worth £225,400. The average ground rent payable was £45 collected annually. The lease termination date was on 10 November 2090. Given that there were 64 years remaining we approximated the premium to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of fees.

Wool case:

Mr and Mrs. B Sharif owned a one bedroom flat in Wool in October 2011. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Identical properties in Wool with 100 year plus lease were valued about £270,000. The mid-range ground rent payable was £55 billed monthly. The lease terminated in 2101. Taking into account 75 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.