Top reasons for Edgbaston lease extension

Main reasons to commence your Edgbaston lease extension today:

A Edgbaston leasehold property depreciates with the years remaining on the lease.

With a residential leasehold premises in Edgbaston, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years left. Leasehold owners in Edgbaston with a lease nearing 81 years left should seriously think of extending it sooner rather than later. Once the lease term has below eighty years left, under the relevant statute the freeholder is entitled to calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.

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

It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Lending institutions will not grant a mortgage with a short lease

Many banks and building societies require a lengthy amount of time left on any leasehold property before they will consider it as adequate security. Even if you don't require a mortgage, you should bear in mind that it is reasonable to assume that someone wishing to acquire your property in the future might well do, so if they can't obtain a mortgage, then the value of the property will likely be adversely impacted. In the last decade the majority of banks and building societies have increased the required minimum lease length that they are willing to grant a mortgage on

Why use us for your lease extension in Edgbaston?

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

Edgbaston Lease Extension Example Cases:

Stanley, Edgbaston, Birmingham

Two years ago Stanley, started to get near to the 80-year mark with the lease on his garden apartment in Edgbaston. Having purchased his flat two decades ago, the length of the lease was of little concern. As luck would have it, he recognised he needed to take action soon on a lease extension. Stanley arranged for a lease extension at the eleventh hour in March. Stanley and the freeholder via the management company subsequently settled on the final figure of £6,000 . If he failed to meet the deadline, the price would have escalated by at least £1,075.

Edgbaston case:

In 2011 we were phoned by Dr W Stewart who, having purchased a basement apartment in Edgbaston in June 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Edgbaston with 100 year plus lease were valued around £260,000. The mid-range amount of ground rent was £50 collected quarterly. The lease came to a finish in 2098. Considering the 72 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.

Edgbaston case:

Ms Amy James moved into a first floor apartment in Edgbaston in May 2000. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparable premises in Edgbaston with an extended lease were valued around £256,600. The average amount of ground rent was £60 billed yearly. The lease finished on 19 November 2078. Considering the 52 years remaining we calculated the compensation to the freeholder for the lease extension to be within £41,800 and £48,400 not including legals.