Why you should commence your Cradley Heath lease extension

Why you should commence your Cradley Heath lease extension today:

Increase your lease and increase your Cradley Heath property value

Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Cradley Heath. Inevitably, the term of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the property needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Cradley Heath have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. You should give careful deliberation before delaying your Cradley Heath lease extension. Putting off that expense now simply increases the price you will eventually incur for a lease extension

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

Leasehold properties in Cradley Heath with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may not lend with a short lease

Most banks and building societies will not grant a mortgage on a lease with less than seventy years remaining - although this varies between mortgage companies. A buyer will no doubt find it difficult in obtaining a mortgage and this will result in your Cradley Heath property being difficult to dispose of or to obtain finance on.

What makes us experts in Cradley Heath lease extensions?

Engaging our service gives you increased control over the value of your Cradley Heath leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Cradley Heath Lease Extension Example Cases:

Adam, Cradley Heath, Birmingham

Last October Adam, came seriously near to the eighty-year mark with the lease on his one bedroom apartment in Cradley Heath. Having bought his flat 19 years ago, the length of the lease was of no importance. by good luck, he became aware that he would soon be paying an inflated amount for a lease extension. Adam was able to extend his lease at the eleventh hour in May. Adam and the freeholder via the managing agents eventually agreed on sum of £6,000 . If the lease had descended to less than 80 years, the price would have increased by a minimum £875.

Cradley Heath case:

Dr G Patel completed a garden apartment in Cradley Heath in November 1995. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Cradley Heath with an extended lease were valued about £216,000. The average ground rent payable was £60 collected annually. The lease concluded on 28 June 2084. Considering the 58 years remaining we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus costs.

Cradley Heath case:

Last month we were called by Mr and Mrs. M André , who acquired a garden apartment in Cradley Heath in March 2007. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar properties in Cradley Heath with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ended on 23 March 2104. Given that there were 78 years left we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.