Main reasons to commence your Wroxham lease extension

Top reasons for lease extension now:

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

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

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

It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 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 decide not to finance a property on a short lease

Nearly all banks and building societies insist on a lengthy amount of time remaining on a leasehold property before they will contemplate it as adequate security. Even if you don't need a mortgage, you should be mindful that it is reasonable to assume that someone wanting to buy your property in the future might well do, so where they are not able to get a mortgage, then the financial worth of the property will likely suffer. In the last decade many mortgage lenders have increased the required minimum lease length that they are willing to accept

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

The conveyancing solicitors that we work with handle Wroxham 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.

Wroxham Lease Extension Case Summaries:

Liam, Wroxham, Norfolk,

Liam was the the leasehold owner of a 2 bedroom apartment in Wroxham being marketed with a lease of a little over sixty years outstanding. Liam on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Liam to invoke his statutory right. Liam obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.

Wroxham case:

Last Winter we were approach by Mrs Jade Simon , who owned a newly refurbished flat in Wroxham in February 2008. The question was if we could estimate the premium could be to extend the lease by an additional years. Comparable properties in Wroxham with a long lease were worth £275,000. The average ground rent payable was £55 collected quarterly. The lease concluded in 2102. Given that there were 77 years remaining we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.

Wroxham case:

Last Autumn we were called by Mr and Mrs. R Watson , who took over the lease of a ground floor flat in Wroxham in May 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Wroxham with an extended lease were worth £183,600. The average amount of ground rent was £65 invoiced every twelve months. The lease concluded on 1 September 2082. Given that there were 57 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus costs.