Why you should commence your Browns Green lease extension

Top reasons for lease extension now:

A Browns Green leasehold property depreciates with the years remaining on the lease.

Browns Green leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Browns Green tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Browns Green you should check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

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

Leasehold properties in Browns Green with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions will not lend on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get concerned at around 75 years. This may cause difficulties once you come to market or remortgage your property as it will be effectively unmortgageable. You may have no immediate intention to sell but when you do your buyer will need to hold off for 2 years before being able to exercise the right to a a lease extension.

What makes us experts in Browns Green lease extensions?

Irrespective of whether you are a tenant or a freeholder in Browns Green,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 Browns Green valuers.

Browns Green Lease Extension Case Summaries:

Omar, Browns Green, Birmingham,

Omar was the the leasehold proprietor of a 2 bedroom apartment in Browns Green being marketed with a lease of a little over sixty years remaining. Omar on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Omar to exercise his statutory right. Omar procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.

Browns Green case:

Mr C García acquired a ground floor flat in Browns Green in February 2001. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Identical premises in Browns Green with a long lease were worth £254,200. The mid-range amount of ground rent was £60 billed quarterly. The lease termination date was in 2077. Having 51 years outstanding we calculated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 plus legals.

Browns Green case:

In 2014 we were phoned by Dr Katie Allen who, having purchased a newly refurbished apartment in Browns Green in June 2002. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparable residencies in Browns Green with an extended lease were worth £210,600. The average ground rent payable was £45 collected every twelve months. The lease terminated on 28 April 2088. Considering the 62 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including fees.