Main reasons to commence your Wootton lease extension

Top reasons for lease extension now:

A Wootton lease depreciates with the years remaining on the lease.

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

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

Leasehold premises in Wootton with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.

Mortgage lenders may decide not to loan monies with a short lease

Lending institutions have specific criteria when loaning monies charged on leasehold property. Some will simply refrain from lending at all once an unexpired lease term slips below a certain unexpired lease term. Many Banks and Building Societies will not regard property with a remaining term of less than seventy years as adequate security. In addition to impacting your ability to sell, it is also relevant where you are seeking to refinance your Wootton property.

Why use us for your lease extension in Wootton?

The conveyancing solicitors that we work with undertake Wootton 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.

Wootton Lease Extension Example Cases:

Harrison, Wootton, Northamptonshire

In recent months Harrison, came critically close to the eighty-year mark with the lease on his one bedroom flat in Wootton. Having bought his property 19 years ago, the lease term was of minimal concern. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Harrison was able to extend his lease at the eleventh hour in September. Harrison and the freeholder via the management company in the end settled on sum of £5,000 . If he failed to meet the deadline, the sum would have become more costly by at least £975.

Wootton case:

Last month we were phoned by Mr Eliot Williams , who bought a basement apartment in Wootton in November 2002. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative flats in Wootton with a long lease were valued about £218,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease terminated on 5 June 2089. Considering the 63 years unexpired we calculated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 plus expenses.

Wootton case:

Last Spring we were e-mailed by Dr I James , who bought a ground floor flat in Wootton in May 2008. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Identical residencies in Wootton with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 billed quarterly. The lease ran out on 23 September 2100. Considering the 74 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.