Main reasons to commence your Worplesdon lease extension

Main reasons to start your Worplesdon lease extension today:

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

Worplesdon residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Worplesdon with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not grant a mortgage 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 property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past mortgage companies were content with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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

Lease extensions in Worplesdon can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Worplesdon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Worplesdon Lease Extension Case Summaries:

Finley, Worplesdon, Surrey

Last October Finley, came precariously near to the eighty-year threshold with the lease on his ground floor flat in Worplesdon. Having purchased his property 18 years previously, the unexpired term was of no bearing. by good luck, it dawned on him that he would imminently be paying way over the odds for a lease extension. Finley was able to extend his lease at the eleventh hour last March. Finley and the landlord subsequently agreed on the final figure of £5,000 . If he failed to meet the deadline, the sum would have gone up by a minimum £1,125.

Worplesdon case:

Dr Jackson Martin took over the lease of a one bedroom flat in Worplesdon in May 2005. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar flats in Worplesdon with 100 year plus lease were worth £256,600. The average ground rent payable was £60 collected yearly. The lease came to a finish in 2078. Given that there were 52 years remaining we estimated the premium to the landlord to extend the lease to be within £39,000 and £45,000 exclusive of expenses.

Worplesdon case:

In 2009 we were approached by Ms Alicia Adams who, having was assigned a lease of a garden flat in Worplesdon in June 2012. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Similar homes in Worplesdon with a long lease were worth £218,000. The mid-range ground rent payable was £45 billed annually. The lease end date was in 2089. Having 63 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 plus expenses.