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Top reasons for Brinklow lease extension


Top reasons for lease extension now:

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

When it comes to residential leasehold premises in Brinklow, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Anyone in Brinklow with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When the lease term has less than eighty years remaining, under the current statute the landlord is entitled to calculate and levy a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Lending institutions may not lend on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has resulted in the unexpired lease term required by banks has increased. Historically banks were content with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Lender Requirement
Accord Mortgages 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Bank of Scotland Minimum 70 years from the date of the mortgage.
Birmingham Midshires Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years.

For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

What makes us experts in Brinklow lease extensions?

Lease extensions in Brinklow can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.

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 in-depth market knowledge procuring Brinklow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Brinklow Lease Extension Case Studies:

George, Brinklow, Warwickshire,

George was the the leasehold proprietor of a 2 bedroom apartment in Brinklow being marketed with a lease of a few days over 61 years left. George on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were George to exercise his statutory right. George obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.

Brinklow case:

Last year we were phoned by Mr Jackson Lefèvre , who moved into a basement flat in Brinklow in August 1997. The dilemma was if we could approximate the price would likely be to prolong the lease by 90 years. Comparative flats in Brinklow with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease concluded in 2100. Having 75 years unexpired we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.

Brinklow case:

Last Winter we were approach by Mrs Poppy Cox , who moved into a one bedroom flat in Brinklow in June 2008. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable residencies in Brinklow with 100 year plus lease were in the region of £250,400. The mid-range amount of ground rent was £65 billed monthly. The lease expired on 15 June 2089. Given that there were 64 years remaining we calculated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including legals.