Main reasons to commence your Coventry lease extension

Main reasons to commence your Coventry lease extension today:

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

Coventry leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Coventry will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.

Mortgage lenders may decide not to lend with a short lease

Almost all banks and building societies will be unwilling to grant a mortgage on a lease with under seventy years unexpired - although this varies between mortgage companies. A purchaser will undoubtedly find it difficult to obtain a mortgage and this could result in your Coventry property being difficult to sell or to obtain finance on.

What makes us experts in Coventry lease extensions?

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

Coventry Lease Extension Case Summaries:

Jake, Coventry, Warwickshire

Last Winter Jake, started to get near to the 80-year mark with the lease on his garden apartment in Coventry. In buying his flat two decades ago, the unexpired term was of minimal significance. by good luck, he noticed he would soon be paying way over the odds for a lease extension. Jake extended the lease just ahead of time last January. Jake and the freeholder via the management company ultimately agreed on a premium of £5,000 . If he not met the deadline, the premium would have gone up by a minimum £850.

Coventry case:

Mrs M André purchased a studio flat in Coventry in August 2005. The question was if we could approximate the premium could be to prolong the lease by an additional years. Comparable flats in Coventry with 100 year plus lease were valued about £218,000. The average ground rent payable was £45 billed annually. The lease expired on 6 June 2089. Considering the 63 years as a residual term we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of professional charges.

Coventry case:

Mr A Brown purchased a studio apartment in Coventry in September 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Identical homes in Coventry with a long lease were worth £270,000. The average ground rent payable was £55 collected annually. The lease lapsed in 2100. Given that there were 74 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.