Main reasons to commence your Erdington lease extension

Main reasons to commence your Erdington lease extension today:

Increase your lease and increase your Erdington property value

Erdington leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Erdington tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Erdington you really ought to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

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

It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.

Banks and Building Societies may not loan monies on a short lease

Banks and building societies are really restricting their approach as regards to properties in Erdington with short leases. For instance you might discover that their lending requirements are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you wanted to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus reducing your market.

What makes us experts in Erdington lease extensions?

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

Erdington Lease Extension Example Cases:

Alexander, Erdington, Birmingham

During the course of the last few months Alexander, started to get close to the 80-year mark with the lease on his studio apartment in Erdington. Having bought his property two decades ago, the length of the lease was of minimal interest. Thankfully, he became aware that he would soon be paying an escalated premium for Extending the lease. Alexander arranged for a lease extension just ahead of time last January. Alexander and the freeholder ultimately agreed on the final figure of £6,000 . If the lease had dipped lower than 80 years, the amount would have gone up by at least £1,050.

Erdington case:

In 2013 we were phoned by Mr and Mrs. B Phillips who, having acquired a basement apartment in Erdington in February 2001. We are asked if we could estimate the price would be to prolong the lease by ninety years. Identical premises in Erdington with a long lease were valued about £255,000. The mid-range ground rent payable was £50 billed quarterly. The lease terminated on 3 June 2096. Considering the 70 years outstanding we estimated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 plus legals.

Erdington case:

Dr W David took over the lease of a first floor apartment in Erdington in September 1996. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable homes in Erdington with 100 year plus lease were valued about £246,800. The mid-range ground rent payable was £60 collected per annum. The lease expired in 2076. Given that there were 50 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 plus professional charges.