Main reasons to commence your Balsall Common lease extension

Top reasons for lease extension now:

Increase your lease and increase your Balsall Common property value

The market value of a leasehold property in Balsall Common depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be addressed in advance of the 80 year threshold. Current legislation enables Balsall Common qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of 90 years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

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

Leasehold premises in Balsall Common with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lenders may not finance a property with a short lease

Mortgage companies are making their criteria more stringent and a meaningful number now expect flats to have at least sixty if not seventy years left at the expiry of the mortgage. Considering a number of flats in Balsall Common were created in the 1950s, 1960s and 1970s this means many now need to be extended if they if they are to be mortgageable.

Get in touch with one of our Balsall Common lease extension solicitors or enfranchisement solicitors

The lawyers that we work with undertake Balsall Common 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.

Balsall Common Lease Extension Example Cases:

Yasmin, Balsall Common, Birmingham,

Subsequent to unsuccessful discussions with the landlord of her garden flat in Balsall Common, Yasmin started the lease extension process just as her lease was approaching the critical eighty-year deadline. The legal work was finalised in May 2014. The landlord’s fees were negotiated to about 450 GBP.

Balsall Common case:

In 2009 we were contacted by Mr Tommy Clarke who, having bought a garden flat in Balsall Common in October 2010. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar residencies in Balsall Common with a long lease were in the region of £250,000. The average amount of ground rent was £50 invoiced yearly. The lease termination date was on 3 February 2095. Taking into account 69 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.

Balsall Common case:

Dr Jasmine Brooks completed a one bedroom apartment in Balsall Common in October 2012. The dilemma was if we could estimate the price could be to extend the lease by an additional years. Similar homes in Balsall Common with a long lease were valued about £290,000. The average ground rent payable was £60 billed annually. The lease came to a finish on 13 July 2106. Considering the 80 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.