Why you should start your Wynyard lease extension

Main reasons to commence your Wynyard lease extension today:

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

The re-sale value of a leasehold property in Wynyard depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when a lease still has 82 years remaining so that formalities can be finalised prior to the 80 year cut off point. Statute enables Wynyard qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.

Banks and Building Societies may not grant a mortgage with a short lease

Banks and building societies are really restricting their approach as regards to properties in Wynyard with short leases. For example you may find 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 wanted to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus limiting the number of prospective purchasers.

Why use us for your lease extension in Wynyard?

The conveyancing solicitors that we work with procure Wynyard 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.

Wynyard Lease Extension Example Cases:

Michael, Wynyard, County Durham

During the course of the last few months Michael, started to get near to the eighty-year threshold with the lease on his garden flat in Wynyard. In buying his flat twenty years previously, the unexpired term was of little concern. Luckily, he became aware that he needed to take steps soon on a lease extension. Michael arranged for a lease extension just ahead of time last July. Michael and the freeholder subsequently agreed on an amount of £6,000 . If he had missed the deadline, the amount would have become more exhorbitant by a minimum £1,000.

Wynyard case:

Ms K Moore bought a one bedroom apartment in Wynyard in April 1999. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparable properties in Wynyard with 100 year plus lease were worth £189,000. The average amount of ground rent was £55 invoiced per annum. The lease ran out on 5 October 2079. Taking into account 53 years remaining we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of fees.

Wynyard case:

Mr and Mrs. N Bernard owned a purpose-built flat in Wynyard in March 2001. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Wynyard with 100 year plus lease were valued about £290,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease terminated on 12 April 2099. Given that there were 73 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.