Main reasons to start your Wimborne lease extension

Main reasons to start your Wimborne lease extension today:

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

With a residential leasehold property in Wimborne, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are fewer than eighty years remaining. Anyone in Wimborne with a lease drawing near to 81 years left should seriously consider extending it without delay. When a lease has under 80 years left, under the current Act the freeholder can calculate and charge a greater amount, based on a technical calculation, known as “marriage value” which is payable.

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

It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Lending institutions will not finance a property with a short lease

Lenders are really restricting their approach as regards to properties in Wimborne with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash purchaser, or hope for the best at auction thus narrowing your market.

What makes us experts in Wimborne lease extensions?

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

Wimborne Lease Extension Case Summaries:

Eliot, Wimborne, Dorset

During the course of the last few months Eliot, came very near to the eighty-year mark with the lease on his first floor apartment in Wimborne. Having bought his home two decades ago, the lease term was of minimal importance. Fortunately, he became aware that he needed to take steps soon on a lease extension. Eliot was able to extend his lease just under the wire last July. Eliot and the landlord who owned the flat above eventually agreed on sum of £5,000 . If the lease had slid lower than eighty years, the sum would have gone up by a minimum £1,075.

Wimborne case:

Last month we were e-mailed by Ms J Bennett , who completed a garden apartment in Wimborne in July 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Similar premises in Wimborne with an extended lease were in the region of £267,600. The average ground rent payable was £65 collected every twelve months. The lease finished on 23 October 2093. Given that there were 67 years unexpired we approximated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 not including expenses.

Wimborne case:

Ms Catherine Kelly acquired a studio flat in Wimborne in July 2001. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative flats in Wimborne with an extended lease were valued around £206,200. The average amount of ground rent was £55 collected quarterly. The lease end date was on 28 May 2082. Given that there were 56 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including professional charges.