Main reasons to start your Birkenhead lease extension

Main reasons to start your Birkenhead lease extension today:

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

The re-sale value of a leasehold property in Birkenhead depends on how long the lease has remaining. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended 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 all matters can be concluded in advance of the 80 year threshold. Leasehold Reform legislation entitles Birkenhead qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold residencies in Birkenhead with more than 100 years unexpired 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 reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may not grant a mortgage with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to become concerned at around 75 years. This will cause difficulties as and when you come to dispose of or refinance your property as it will be practically unmortgageable. Even though you may have no imminent plan to sell but when you do your buyer must wait a couple of years before they can exercise the right to a an extension to the lease.

Why use us for your lease extension in Birkenhead?

Regardless of whether you are a tenant or a freeholder in Birkenhead,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Birkenhead valuers.

Birkenhead Lease Extension Case Studies:

Chelsea, Birkenhead, Merseyside,

Off the back of unsuccessful correspondence with the landlord of her studio flat in Birkenhead, Chelsea started the lease extension process as the 80 year deadline was rapidly coming. The legal work completed in September 2006. The landlord’s charges were restricted to slightly above 700 pounds.

Birkenhead case:

Mrs Poppy Robinson purchased a one bedroom flat in Birkenhead in March 1998. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical homes in Birkenhead with an extended lease were valued around £225,800. The mid-range ground rent payable was £60 invoiced annually. The lease concluded in 2086. Considering the 60 years outstanding we approximated the premium to the landlord for the lease extension to be between £25,700 and £29,600 exclusive of costs.

Birkenhead case:

In 2014 we were contacted by Dr Felix Adams who, having was assigned a lease of a purpose-built flat in Birkenhead in June 2000. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Similar properties in Birkenhead with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 collected yearly. The lease elapsed on 9 October 2106. Given that there were 80 years remaining we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.