Why you should start your Earlswood lease extension

Main reasons to commence your Earlswood lease extension today:

Increase your lease and increase your Earlswood property value

The re-sale value of a leasehold property in Earlswood is impacted by how long the lease has remaining. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that all matters can be finalised prior to the 80 year mark. Leasehold Reform legislation entitles Earlswood qualifying lessees to an additional term of 90 years in addition to the remaining term, at a notional rent (no ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for decades to come.

Lenders will not issue a mortgage on a short lease

Lending institutions have set criteria when loaning monies secured on leasehold property. Many will simply refuse lend at all once the remaining lease term goes lower than a certain unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired below 75 years suitable security. As well as impacting your ability to sell, it is also relevant where you are seeking to remortgage your Earlswood property.

Why use us for your lease extension in Earlswood?

Regardless of whether you are a tenant or a freeholder in Earlswood,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Earlswood valuers.

Earlswood Lease Extension Case Studies:

Poppy, Earlswood, Warwickshire,

Subsequent to unsuccessful discussions with the landlord of her first floor apartment in Earlswood, Poppy commenced the lease extension process as the 80 year mark was quickly approaching. The lease extension was finalised in October 2007. The landlord’s fees were restricted to approximately 450 GBP.

Earlswood case:

Mr and Mrs. E Clarke moved into a one bedroom flat in Earlswood in January 2012. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Identical homes in Earlswood with a long lease were in the region of £275,000. The average ground rent payable was £45 collected every twelve months. The lease lapsed on 7 June 2095. Having 69 years outstanding we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.

Earlswood case:

Ms Rosie Carter purchased a ground floor flat in Earlswood in November 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparable flats in Earlswood with an extended lease were in the region of £216,000. The average ground rent payable was £60 billed per annum. The lease ended in 2084. Given that there were 58 years remaining we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of fees.