Main reasons to commence your Burntwood lease extension

Why you should start your Burntwood lease extension today:

Increase your lease and increase your Burntwood property value

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

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

Leasehold premises in Burntwood with more than 100 years unexpired 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.

Lending institutions may not issue a mortgage with a short lease

Lending institutions have set criteria when lending funds secured on leasehold property. Some will simply refrain from lending at all once an unexpired lease term goes under a certain unexpired lease term. Many Banks and Building Societies will not regard property with a remaining term of less than seventy years as adequate security. In addition to impacting your ability to sell, it is also relevant if you are intending to remortgage your Burntwood home.

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

Engaging our service gives you enhanced control over the value of your Burntwood leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Burntwood Lease Extension Example Cases:

Isaac, Burntwood, Staffordshire,

Isaac owned a studio flat in Burntwood on the market with a lease of a little over fifty eight years unexpired. Isaac on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Isaac to invoke his statutory right. Isaac procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.

Burntwood case:

Last Winter we were called by Dr H Roux , who owned a ground floor apartment in Burntwood in April 2012. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Similar flats in Burntwood with an extended lease were valued about £189,000. The mid-range amount of ground rent was £55 billed annually. The lease came to a finish on 3 March 2079. Having 53 years as a residual term we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of costs.

Burntwood case:

Mr and Mrs. E Nelson acquired a first floor apartment in Burntwood in April 2012. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical flats in Burntwood with an extended lease were worth £290,000. The average amount of ground rent was £45 collected yearly. The lease came to a finish on 9 January 2099. Taking into account 73 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.