Top reasons for Bilston and Bradley lease extension

Main reasons to start your Bilston and Bradley lease extension today:

A Bilston and Bradley leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Bilston and Bradley depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded prior to the eighty year threshold. Leasehold Reform legislation enables Bilston and Bradley qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold properties in Bilston and Bradley with more than 100 years outstanding 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.

Mortgage lenders will not issue a mortgage on a short lease

Mortgage lenders have set criteria when loaning monies charged on leasehold property. Many will simply refrain from lending at all once the remaining lease term drops beneath a specified unexpired lease term. Many Banks and Building Societies will not consider property with a remaining term of less than seventy years as acceptable security. In addition to impacting your ability to sell, it is also relevant where you are seeking to remortgage your Bilston and Bradley home.

Get in touch with one of our Bilston and Bradley lease extension solicitors or enfranchisement solicitors

Retaining our service will provide you enhanced control over the value of your Bilston and Bradley leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Bilston and Bradley Lease Extension Example Cases:

Georgia, Bilston and Bradley, Birmingham,

In the wake of eight months of lengthy negotiations with the landlord of her studio flat in Bilston and Bradley, Georgia started the lease extension process just as her lease was nearing the all-important 80-year threshold. The legal work was concluded in October 2015. The landlord’s charges were kept to an absolute minimum.

Bilston and Bradley case:

In 2012 we were phoned by Dr K Morel who, having owned a first floor flat in Bilston and Bradley in May 2002. The question was if we could estimate the premium would be for a ninety year extension to my lease. Identical properties in Bilston and Bradley with a long lease were worth £171,800. The average ground rent payable was £55 collected quarterly. The lease elapsed in 2076. Considering the 50 years unexpired we approximated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 not including legals.

Bilston and Bradley case:

In 2014 we were approached by Mr and Mrs. E Bennett who, having owned a one bedroom apartment in Bilston and Bradley in August 2005. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical homes in Bilston and Bradley with an extended lease were worth £280,000. The average amount of ground rent was £45 invoiced annually. The lease expiry date was in 2096. Given that there were 70 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.