Why you should start your Dorridge lease extension

Why you should commence your Dorridge lease extension today:

Increase your lease and increase your Dorridge property value

On the balance of probabilities if you own a flat in Dorridge you actually own a long leasehold interest over your property

Dorridge property with a lease extension is almost the same value as a freehold

Leasehold residencies in Dorridge with in excess of 100 years unexpired 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 upside in buying the freehold unless savings on ground rent and service charges justify it.

Lenders may not issue a mortgage on a short lease

The trend since the credit crunch has been for banks to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has resulted in the unexpired lease term required by lenders has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

Retaining our service gives you better control over the value of your Dorridge leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Dorridge Lease Extension Case Studies:

Jayden, Dorridge, Birmingham,

Jayden was the the leasehold owner of a conversion flat in Dorridge on the market with a lease of just over 59 years outstanding. Jayden on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jayden to invoke his statutory right. Jayden procured expert advice and secured satisfactory deal without going to tribunal and readily saleable.

Dorridge case:

In 2009 we were approached by Dr V Brown who, having completed a recently refurbished apartment in Dorridge in September 1997. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Comparable homes in Dorridge with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 billed per annum. The lease came to a finish in 2100. Taking into account 74 years remaining we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.

Dorridge case:

Last Winter we were phoned by Mr and Mrs. G Collins , who acquired a ground floor flat in Dorridge in January 2012. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar residencies in Dorridge with a long lease were worth £248,000. The average ground rent payable was £65 billed annually. The lease ran out on 16 February 2089. Considering the 63 years remaining we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 plus professional charges.