Why you should commence your Cannock lease extension

Main reasons to commence your Cannock lease extension today:

Increase your lease and increase your Cannock property value

Cannock leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Cannock tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Cannock you must see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Lenders may not loan monies with a short lease

Banks and building societies do not like short residential leases. You are likely to encounter difficulties if you want to sell your flat in Cannock if the unexpired term of your lease is less than the criteria set by the majority of mortgage companies. Different mortgage companies have varying requirements but on the whole theyrequire a minimum remaining lease term of seventy years.

Why use us for your lease extension in Cannock?

The conveyancing solicitors that we work with undertake Cannock lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Cannock Lease Extension Case Summaries:

Jamie, Cannock, Staffordshire,

Jamie was the the leasehold owner of a 2 bedroom flat in Cannock being sold with a lease of fraction over 61 years unexpired. Jamie on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms 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 Jamie to invoke his statutory right. Jamie obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.

Cannock case:

Mrs Sophie Morgan purchased a one bedroom apartment in Cannock in June 2004. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparable premises in Cannock with an extended lease were worth £198,800. The average amount of ground rent was £55 invoiced every twelve months. The lease finished on 21 February 2081. Taking into account 55 years left we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus legals.

Cannock case:

In 2011 we were called by Mr and Mrs. S Wood who, having acquired a newly refurbished apartment in Cannock in September 2012. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar homes in Cannock with 100 year plus lease were valued around £295,000. The mid-range amount of ground rent was £50 billed monthly. The lease ran out on 1 March 2101. Considering the 75 years unexpired we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.