Main reasons to commence your Werrington lease extension

Main reasons to commence your Werrington lease extension today:

Increase your lease and increase your Werrington property value

With a domestic leasehold premises in Werrington, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years left. Residents in Werrington with a lease nearing 81 years left should seriously consider extending it as soon as possible. When a lease has under 80 years remaining, under the relevant Act the freeholder can calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is payable.

Werrington property with a lease extension is almost the same value as a freehold

Leasehold properties in Werrington with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions will not lend with a short lease

Most banks have tightened lending criteria in the last ten years and borrowers are encountering difficulties in arranging finance or re-mortgage against property with shorter lease terms, particularly under 75 years as they are considered to be unacceptable for lending purposes.

What makes us experts in Werrington lease extensions?

Regardless of whether you are a tenant or a freeholder in Werrington,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Werrington valuers.

Werrington Lease Extension Case Summaries:

Eli, Werrington, Cambridgeshire,

Eli was the the leasehold owner of a studio flat in Werrington on the market with a lease of a few days over sixty years unexpired. Eli informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Eli to invoke his statutory right. Eli procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.

Werrington case:

In 2013 we were approached by Dr Dexter Bonnet who, having purchased a studio apartment in Werrington in July 1997. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar premises in Werrington with a long lease were worth £285,000. The average ground rent payable was £45 invoiced per annum. The lease finished on 9 June 2097. Taking into account 71 years outstanding we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.

Werrington case:

Mr and Mrs. A Green moved into a first floor apartment in Werrington in November 2011. The question was if we could approximate the price would likely be for a 90 year lease extension. Identical premises in Werrington with a long lease were in the region of £225,800. The mid-range ground rent payable was £60 invoiced monthly. The lease came to a finish on 19 August 2086. Considering the 60 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 exclusive of costs.