Why you should commence your Astwood Bank lease extension

Why you should start your Astwood Bank lease extension today:

Increase your lease and increase your Astwood Bank property value

The re-sale value of a leasehold property in Astwood Bank depends on how long the lease has left to run. If it is near to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when the lease still has 82 years to run so that a lease extension can be finalised in advance of the eighty year mark. Leasehold Reform legislation enables Astwood Bank qualifying lessees to an additional term of ninety years in addition to the existing term, at a peppercorn rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

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

It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Lending institutions may decide not to lend with a short lease

Most mortgage lenders have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly under seventy years as they are regarded as unacceptable security.

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

Lease extensions in Astwood Bank can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.

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 Astwood Bank lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Astwood Bank Lease Extension Example Cases:

Rosie, Astwood Bank, Worcestershire,

Off the back of protracted correspondence with the freeholder of her leasehold flat in Astwood Bank, Rosie initiated the lease extension process just as the lease was coming close to the critical 80-year mark. The legal work was concluded in August 2008. The landlord’s costs were kept to an absolute minimum.

Astwood Bank case:

Last January we were contacted by Ms S Rivera , who bought a studio flat in Astwood Bank in August 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparative properties in Astwood Bank with a long lease were worth £168,800. The average ground rent payable was £60 collected yearly. The lease came to a finish on 15 February 2081. Having 55 years unexpired we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including expenses.

Astwood Bank case:

Mr and Mrs. K Kelly owned a newly refurbished apartment in Astwood Bank in January 2000. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Astwood Bank with a long lease were worth £235,200. The mid-range ground rent payable was £45 invoiced every twelve months. The lease came to a finish on 24 September 2092. Taking into account 66 years remaining we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.