Main reasons to commence your Fernhill Heath lease extension

Main reasons to start your Fernhill Heath lease extension today:

A Fernhill Heath leasehold property depreciates with the years remaining on the lease.

The nearer a residential lease in Fernhill Heath gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 125 years to run then this decrease may be fractional however there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner rather than later. Most flat owners in Fernhill Heath will meet the qualifying criteria; however a lawyer can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Fernhill Heath with over 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Lending institutions may not loan monies with a short lease

Almost all mortgage lenders will be unwilling to lend on a lease with less than 70 years left to run - although this varies between mortgage companies. A buyer will no doubt find it difficult to obtain a mortgage and this will result in your Fernhill Heath property being difficult to dispose of or to obtain finance on.

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

Regardless of whether you are a tenant or a landlord in Fernhill Heath,the lease extension experts 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 Fernhill Heath valuers.

Fernhill Heath Lease Extension Case Summaries:

Connor, Fernhill Heath, Worcestershire

In 2014 Connor, started to get near to the 80-year mark with the lease on his basement apartment in Fernhill Heath. Having purchased his flat 19 years previously, the lease term was of little interest. Luckily, he realised he would soon be paying an inflated amount for a lease extension. Connor extended the lease at the eleventh hour last July. Connor and the freeholder eventually settled on the final figure of £5,500 . If the lease had gone to less than eighty years, the figure would have gone up by at least £975.

Fernhill Heath case:

Mr and Mrs. S Miller took over the lease of a one bedroom flat in Fernhill Heath in March 2008. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable homes in Fernhill Heath with an extended lease were worth £240,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease expired in 2088. Given that there were 62 years outstanding we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.

Fernhill Heath case:

Last Christmas we were approach by Dr Y Reed , who purchased a basement apartment in Fernhill Heath in April 2000. The dilemma was if we could estimate the price could be to prolong the lease by 90 years. Similar residencies in Fernhill Heath with an extended lease were in the region of £174,200. The average ground rent payable was £55 billed quarterly. The lease came to a finish in 2077. Having 51 years remaining we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including costs.