Why you should commence your Acocks Green lease extension

Main reasons to commence your Acocks Green lease extension today:

Increase your lease and increase your Acocks Green property value

With a residential leasehold premises in Acocks Green, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are less than 80 years left. Anyone in Acocks Green with a lease nearing 81 years remaining should seriously consider extending it without delay. When a lease has less than 80 years left, under the relevant statute the freeholder is entitled to calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is due.

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

It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may decide not to loan monies with a short lease

The trend since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past banks were content with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

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

The lawyers that we work with handle Acocks Green 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 lawyer we work with provide it.

Acocks Green Lease Extension Example Cases:

Jackson, Acocks Green, Birmingham

Last year Jackson, started to get close to the eighty-year threshold with the lease on his ground floor apartment in Acocks Green. In buying his property 19 years previously, the lease term was of no bearing. by good luck, he noticed he needed to take action soon on Extending the lease. Jackson was able to extend his lease just ahead of time last July. Jackson and the freeholder via the managing agents in the end agreed on the final figure of £6,000 . If he failed to meet the deadline, the premium would have increased by a minimum £875.

Acocks Green case:

Mr and Mrs. J Rivera completed a one bedroom flat in Acocks Green in January 2011. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparable properties in Acocks Green with an extended lease were valued around £166,400. The average amount of ground rent was £60 billed monthly. The lease concluded on 24 October 2080. Having 54 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 plus expenses.

Acocks Green case:

Mr and Mrs. Y Williams owned a recently refurbished apartment in Acocks Green in November 2006. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Identical homes in Acocks Green with a long lease were valued around £227,800. The mid-range amount of ground rent was £45 collected annually. The lease ended on 3 July 2091. Having 65 years remaining we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.