Top reasons for Waddon lease extension

Top reasons for lease extension now:

Increase your lease and increase your Waddon property value

The market value of a leasehold property in Waddon is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. Ideally one should start the lease extension process when the lease still has 82 years to run so that formalities can be addressed well before the 80 year threshold. Statute enables Waddon qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium 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 conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.

Lending institutions will not grant a mortgage on a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to get jittery at around 75 years. This will cause difficulties once you need to sell or remortgage your property as it will be effectively unmortgageable. Even though you may not have an imminent desire to sell but when you do your buyer will need to wait 2 years before being able to exercise the right to a an extension to the lease.

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

Regardless of whether you are a tenant or a landlord in Waddon,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Waddon valuers.

Waddon Lease Extension Example Cases:

Samuel, Waddon, South London

Half a year ago Samuel, started to get near to the eighty-year mark with the lease on his basement apartment in Waddon. In buying his property 19 years ago, the lease term was of little significance. Fortunately, he recognised he would soon be paying way over the odds for Extending the lease. Samuel arranged for a lease extension just ahead of time last July. Samuel and the freeholder via the management company subsequently agreed on the final figure of £5,000 . If the lease had dipped below eighty years, the premium would have become more exhorbitant by at least £1,025.

Waddon case:

Dr J Jackson bought a garden flat in Waddon in January 2011. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparative flats in Waddon with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease concluded in 2097. Given that there were 71 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.