Top reasons for Great Barr lease extension

Top reasons for lease extension now:

A Great Barr lease depreciates with the years remaining on the lease.

Great Barr leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Great Barr tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Great Barr you should see if your lease has between 70 and ninety years left. There are good reasons why a Great Barr flat owner with a lease having around eighty years left should take action to make sure that a lease extension is actioned without delay

An extended lease has roughly the same value as a freehold

Leasehold residencies in Great Barr with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lenders may not lend on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically mortgage companies would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

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

Irrespective of whether you are a tenant or a landlord in Great Barr,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 in-depth market knowledge and the close ties they enjoy with Great Barr valuers.

Great Barr Lease Extension Example Cases:

Edward, Great Barr, Birmingham,

Edward was the the leasehold proprietor of a studio apartment in Great Barr being marketed with a lease of fraction over 72 years remaining. Edward on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Edward to invoke his statutory right. Edward obtained expert advice and secured satisfactory deal informally and readily saleable.

Great Barr case:

In 2010 we were phoned by Ms C Lewis who, having owned a garden apartment in Great Barr in June 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Similar flats in Great Barr with an extended lease were in the region of £184,000. The average amount of ground rent was £55 invoiced quarterly. The lease elapsed on 16 June 2079. Taking into account 53 years unexpired we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including costs.

Great Barr case:

Last Winter we were contacted by Mr I Nelson , who took over the lease of a one bedroom flat in Great Barr in November 2009. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Comparable premises in Great Barr with 100 year plus lease were valued about £290,000. The average ground rent payable was £45 collected per annum. The lease elapsed on 16 March 2099. Taking into account 73 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.