Top reasons for Aston lease extension

Top reasons for lease extension now:

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

Aston leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Aston will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has started so it’s wise to be guided by a conveyancer during the process.

Aston property with a lease extension has roughly the same value as a freehold

Leasehold properties in Aston with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.

Lending institutions may not finance a property on a short lease

Banks and building societies are really restricting their approach as regards to properties in Aston with short leases. For example you might discover that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so if you wanted to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus restricting your market.

What makes us experts in Aston lease extensions?

Lease extensions in Aston can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in lease extensions.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Aston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Aston Lease Extension Example Cases:

Nicole, Aston, Birmingham,

Subsequent to protracted discussions with the freeholder of her one bedroom flat in Aston, Nicole commenced the lease extension process as the 80 year deadline was quickly approaching. The transaction was finalised in April 2006. The freeholder’s costs were kept to an absolute minimum.

Aston case:

In 2011 we were contacted by Mr Alfie Smith who, having bought a basement flat in Aston in September 2005. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Similar flats in Aston with an extended lease were valued around £256,600. The mid-range ground rent payable was £60 collected every twelve months. The lease concluded in 2078. Taking into account 52 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £41,800 and £48,400 exclusive of professional charges.

Aston case:

In 2013 we were approached by Dr Lily Carter who, having bought a basement flat in Aston in October 1995. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative properties in Aston with 100 year plus lease were valued about £215,600. The average amount of ground rent was £45 invoiced annually. The lease ran out on 10 March 2088. Given that there were 62 years unexpired we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including costs.