Main reasons to commence your Wymondham lease extension

Why you should commence your Wymondham lease extension today:

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

Wymondham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Wymondham enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Wymondham you must investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold residencies in Wymondham with more than 100 years left on the lease are often 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 to be gained by buying the freehold unless savings on ground rent and service charges warrant it.

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

The trend since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies would lend on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Wymondham?

The conveyancing solicitors that we work with undertake Wymondham 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.

Wymondham Lease Extension Case Studies:

Laura, Wymondham, Norfolk,

In the wake of eight months of protracted correspondence with the landlord of her first floor flat in Wymondham, Laura started the lease extension process just as the lease was nearing the all-important eighty-year mark. The lease extension completed in January 2005. The freeholder’s charges were negotiated to a tad over 550 GBP.

Wymondham case:

Dr U Vincent purchased a purpose-built flat in Wymondham in October 2006. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Wymondham with 100 year plus lease were in the region of £233,200. The mid-range ground rent payable was £60 billed per annum. The lease expired on 7 February 2087. Given that there were 61 years remaining we approximated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 not including professional charges.

Wymondham case:

Ms K González was assigned a lease of a one bedroom flat in Wymondham in November 2002. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Similar properties in Wymondham with a long lease were in the region of £166,800. The average ground rent payable was £50 invoiced per annum. The lease lapsed on 17 May 2076. Having 50 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of fees.