Top reasons for Brewood lease extension

Why you should start your Brewood lease extension today:

Increase your lease and increase your Brewood property value

The value of Brewood leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is less than 80 years

An extended lease has roughly the same value as a freehold

Leasehold properties in Brewood with more than 100 years remaining on the lease are sometimes referred to as ‘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 to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.

Lenders may decide not to issue a mortgage with a short lease

Banks and building societies do not grant a mortgage on short residential leases. You are likely to encounter difficulties where you need to sell your flat in Brewood if the remaining lease term is less than the criteria set by the majority of mortgage companies. Different mortgage companies have different requirements but in the main they are looking for an unexpired term of at least seventy years.

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

Irrespective of whether you are a tenant or a landlord in Brewood,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brewood valuers.

Brewood Lease Extension Example Cases:

Kai, Brewood, Staffordshire,

Kai owned a 2 bedroom flat in Brewood on the market with a lease of a little over fifty eight years left. Kai on an informal basis spoke with his landlord a well known Bristol-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 on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kai to exercise his statutory right. Kai procured expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.

Brewood case:

Last Autumn we were contacted by Dr A Smith , who acquired a first floor apartment in Brewood in April 2001. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical properties in Brewood with an extended lease were worth £223,400. The mid-range ground rent payable was £60 billed every twelve months. The lease ended on 8 February 2085. Considering the 59 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 not including professional charges.

Brewood case:

In 2013 we were phoned by Mr and Mrs. Y Torres who, having moved into a ground floor flat in Brewood in May 2000. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Similar properties in Brewood with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 collected every twelve months. The lease elapsed in 2105. Having 79 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.