Main reasons to commence your Coleshill lease extension

Main reasons to start your Coleshill lease extension today:

A Coleshill leasehold property depreciates with the years remaining on the lease.

As the length of the unexpired term of a Coleshill residential lease lessens so does its value and therefore the value of your property. If the lease has, beyond 125 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Coleshill will meet the qualifying criteria; nevertheless a conveyancer will be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

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

Leasehold properties in Coleshill with more than one hundred years left 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies will not lend on a short lease

Most mortgage lenders have constrained their lending criteria in the last ten years and borrowers are encountering difficulties in arranging finance or re-mortgage against property with shorter lease terms, particularly under seventy years as they are deemed to be unacceptable security.

Why use us for your lease extension in Coleshill?

The lawyers that we work with undertake Coleshill 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.

Coleshill Lease Extension Case Studies:

Robyn, Coleshill, Warwickshire,

Following lengthy correspondence with the freeholder of her purpose-built flat in Coleshill, Robyn commenced the lease extension process as the 80 year deadline was rapidly approaching. The lease extension completed in June 2008. The freeholder’s charges were kept to an absolute minimum.

Coleshill case:

In 2011 we were contacted by Mr and Mrs. F Morgan who, having bought a one bedroom flat in Coleshill in September 1998. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable flats in Coleshill with an extended lease were in the region of £174,200. The mid-range amount of ground rent was £55 invoiced per annum. The lease finished on 12 June 2077. Considering the 51 years remaining we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.

Coleshill case:

In 2014 we were phoned by Mr Ben López who, having moved into a one bedroom flat in Coleshill in March 1997. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Identical premises in Coleshill with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 billed yearly. The lease termination date was in 2097. Having 71 years left we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.