Main reasons to commence your Dorridge lease extension

Top reasons for lease extension now:

A Dorridge lease depreciates with the years remaining on the lease.

There is no doubt about it a leasehold property in Dorridge is a wasting asset as a result of the shortening lease. Where the lease has, over 99 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Dorridge will qualify for this right; that being said a lawyer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

Leasehold residencies in Dorridge with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders may not issue a mortgage on a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet banks and building societies start to get nervous at around 75 years. This may cause difficulties as and when you need to market or remortgage your flat as it will be effectively unmortgageable. Even though you might not have an imminent intention to sell but when you do your buyer must wait a couple of years before being able to exercise the right to a a lease extension.

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

Lease extensions in Dorridge can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Dorridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Dorridge Lease Extension Example Cases:

Poppy, Dorridge, Birmingham,

In the wake of eight months of protracted discussions with the freeholder of her garden apartment in Dorridge, Poppy initiated the lease extension process just as her lease was nearing the critical eighty-year deadline. The lease extension was concluded in May 2008. The landlord’s costs were kept to an absolute minimum.

Dorridge case:

Ms Anna Hall owned a garden apartment in Dorridge in January 2008. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical residencies in Dorridge with 100 year plus lease were in the region of £240,600. The average amount of ground rent was £65 collected annually. The lease came to a finish in 2088. Given that there were 62 years left we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including legals.

Dorridge case:

In 2010 we were contacted by Dr K Girard who, having purchased a one bedroom apartment in Dorridge in June 1996. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Dorridge with 100 year plus lease were valued around £174,200. The average amount of ground rent was £55 billed monthly. The lease termination date was on 4 September 2077. Having 51 years as a residual term we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus expenses.