Why you should commence your Wylam lease extension

Why you should commence your Wylam lease extension today:

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

For those whose Wylam flat is held on a long lease, the message is clear – if nothing is done, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Lenders may decide not to issue a mortgage on a short lease

The trend since 2008 has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the home loan is to be charged. This has meant the unexpired lease term required by banks has increased. Historically banks were content with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Wylam lease extensions?

The conveyancing solicitors that we work with procure Wylam 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 conveyancer we work with provide it.

Wylam Lease Extension Case Studies:

Sam, Wylam, Northumberland,

Sam owned a conversion flat in Wylam on the market with a lease of a few days over fifty eight years remaining. Sam informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Sam to invoke his statutory right. Sam procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.

Wylam case:

Mr Oliver David bought a first floor apartment in Wylam in July 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparable homes in Wylam with a long lease were worth £205,000. The average amount of ground rent was £50 invoiced yearly. The lease expired on 11 April 2105. Having 79 years remaining we approximated the compensation to the freeholder for the lease extension to be within £7,600 and £8,800 plus professional charges.

Wylam case:

In 2011 we were contacted by Mrs Alice Cooper who, having moved into a basement apartment in Wylam in March 2009. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Similar homes in Wylam with an extended lease were worth £270,000. The mid-range ground rent payable was £65 collected monthly. The lease termination date was on 1 June 2094. Considering the 68 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.