Main reasons to commence your Worcester lease extension

Top reasons for lease extension now:

Increase your lease and increase your Worcester property value

The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Worcester can extend the lease for a further 90 years under Leasehold Reform legislation. Do give careful consideration before delaying your Worcester lease extension. Postponing that expense today simply escalates the price you will ultimately be required to pay for a lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Mortgage lenders may not issue a mortgage on a short lease

Lenders are really restricting their approach as regards to properties in Worcester with short leases. For instance you might discover that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you needed to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus narrowing the amount of prospective purchasers.

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

Engaging our service gives you increased control over the value of your Worcester leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Worcester Lease Extension Case Studies:

Gabriel, Worcester, Worcestershire

During the course of the last few months Gabriel, came very close to the eighty-year threshold with the lease on his purpose- built apartment in Worcester. Having purchased his property twenty years ago, the length of the lease was of no significance. Luckily, he recognised he would soon be paying an escalated premium for Extending the lease. Gabriel was able to extend his lease at the eleventh hour in January. Gabriel and the freeholder eventually agreed on sum of £6,000 . If the lease had descended to less than eighty years, the premium would have gone up by a minimum £1,125.

Worcester case:

Last July we were phoned by Dr Isobel Rodríguez , who was assigned a lease of a newly refurbished apartment in Worcester in June 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Comparable flats in Worcester with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 billed every twelve months. The lease came to a finish in 2078. Having 52 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of fees.

Worcester case:

Mr Y Young completed a ground floor flat in Worcester in July 1998. The question was if we could approximate the price would likely be for a 90 year lease extension. Identical properties in Worcester with 100 year plus lease were valued about £285,000. The average amount of ground rent was £45 billed monthly. The lease elapsed on 7 July 2098. Having 72 years left we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.