Why you should commence your Codsall lease extension

Why you should start your Codsall lease extension today:

Increase your lease and increase your Codsall property value

For those whose Codsall flat is held on a long lease, the message is clear – if nothing is done, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.

An extended lease has roughly the same value as a freehold

Leasehold properties in Codsall with in excess of 100 years left on the lease are often regarded as a ‘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 estate charges merit it.

Mortgage lenders may decide not to finance a property with a short lease

Mortgage lenders have set criteria when lending monies secured on leasehold property. Some will simply not lend at all once an unexpired lease term drops under a specified unexpired lease term. Many Mortgage lenders will not regard property with a remaining term of less than seventy years as adequate security. As well as this being important when selling, it is also relevant where you are wanting to remortgage your Codsall home.

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

Regardless of whether you are a tenant or a landlord in Codsall,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Codsall valuers.

Codsall Lease Extension Case Summaries:

Stanley, Codsall, Staffordshire,

Stanley owned a conversion flat in Codsall being sold with a lease of a little over 72 years outstanding. Stanley on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Stanley to invoke his statutory right. Stanley procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.

Codsall case:

In 2010 we were approached by Dr M Martínez who, having bought a basement apartment in Codsall in May 1997. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparative homes in Codsall with a long lease were worth £218,000. The mid-range amount of ground rent was £45 billed yearly. The lease concluded in 2089. Having 63 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of expenses.

Codsall case:

In 2014 we were e-mailed by Mr and Mrs. Y Reed who, having was assigned a lease of a one bedroom apartment in Codsall in April 2004. We are asked if we could approximate the price would likely be for a 90 year lease extension. Similar flats in Codsall with an extended lease were in the region of £265,000. The mid-range ground rent payable was £50 collected per annum. The lease finished on 2 April 2100. Having 74 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.