Why you should commence your Belbroughton lease extension

Top reasons for lease extension now:

A Belbroughton lease depreciates with the years remaining on the lease.

The closer a domestic lease in Belbroughton nears to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond 125 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Many flat owners in Belbroughton will qualify for this right; nevertheless a conveyancer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

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

Leasehold premises in Belbroughton with over 100 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.

Lending institutions may not finance a property with a short lease

Most banks and building societies insist on a lengthy amount of time remaining on any leasehold residence before they will contemplate it as adequate security. Even if you don't need a mortgage, you should keep in mind that it is reasonable to assume that someone wanting to buy your property in the future might well do, so in the event that they are not able to secure a mortgage, then the value of your property will likely suffer. In the last decade most mortgage lenders have increased the required minimum lease length that they are prepared to accept

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

Lease extensions in Belbroughton can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in this area.

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

Belbroughton Lease Extension Example Cases:

Isaac, Belbroughton, Worcestershire,

Isaac owned a studio apartment in Belbroughton being marketed with a lease of a little over sixty years unexpired. Isaac informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert advice and secured satisfactory resolution informally and sell the flat.

Belbroughton case:

In 2009 we were e-mailed by Mr and Mrs. M Garcia who, having completed a newly refurbished flat in Belbroughton in November 2009. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Identical premises in Belbroughton with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected per annum. The lease lapsed on 10 June 2100. Given that there were 74 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.

Belbroughton case:

In 2011 we were contacted by Mr and Mrs. H Jackson who, having owned a one bedroom flat in Belbroughton in October 2009. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Belbroughton with 100 year plus lease were in the region of £248,000. The average ground rent payable was £65 invoiced monthly. The lease ran out on 13 November 2089. Having 63 years unexpired we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus fees.