Main reasons to start your Earlswood lease extension

Top reasons for lease extension now:

Increase your lease and increase your Earlswood property value

The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Earlswood may extend the lease for a further ninety years in accordance with legislation. Please give careful consideration before delaying your Earlswood lease extension. Putting off the costs now simply escalates the amount you will eventually have to pay for a lease extension.

An extended lease has roughly the same value as a freehold

Leasehold properties in Earlswood with more than one hundred years outstanding 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.

Mortgage lenders will not lend with a short lease

Lending institutions have specific criteria when loaning funds secured on leasehold property. Many will simply refuse lend at all once the residual lease term goes lower than a certain unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below seventy years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are wanting to remortgage your Earlswood home.

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

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

Earlswood Lease Extension Example Cases:

Ali, Earlswood, Warwickshire,

Ali owned a 2 bedroom flat in Earlswood being marketed with a lease of just over fifty eight years remaining. Ali informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ali to invoke his statutory right. Ali obtained expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.

Earlswood case:

In 2010 we were approached by Mrs T Díaz who, having acquired a ground floor flat in Earlswood in August 2011. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Identical properties in Earlswood with an extended lease were worth £208,600. The average amount of ground rent was £60 invoiced quarterly. The lease ran out in 2083. Taking into account 57 years outstanding we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus legals.

Earlswood case:

Last Spring we were phoned by Mr and Mrs. A Laurent , who was assigned a lease of a ground floor flat in Earlswood in February 2004. The question was if we could estimate the premium would be for a ninety year extension to my lease. Similar residencies in Earlswood with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 collected every twelve months. The lease lapsed on 23 April 2103. Taking into account 77 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.