Why you should commence your Handsworth lease extension

Why you should commence your Handsworth lease extension today:

Increase your lease and increase your Handsworth property value

There is no doubt about it a leasehold flat or house in Handsworth is a wasting asset as a result of the diminishing lease term. If the lease has, more than 99 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Handsworth will meet the qualifying criteria; that being said a conveyancing solicitor can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

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

It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Lending institutions may not loan monies on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get nervous at around 75 years. This will cause difficulties as and when you come to market or refinance your flat as it will be effectively unmortgageable. You might not have an imminent desire to sell but when you do your purchaser will need to hold off for two years before being able to commence the legal procedures for a lease extension.

Why use us for your lease extension in Handsworth?

The lawyers that we work with procure Handsworth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Handsworth Lease Extension Case Summaries:

Eli, Handsworth, Birmingham

Last year Eli, came precariously close to the 80-year mark with the lease on his ground floor apartment in Handsworth. Having purchased his flat two decades ago, the length of the lease was of minimal bearing. Luckily, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Eli extended the lease just in the nick of time in March. Eli and the freeholder subsequently agreed on sum of £5,000 . If he had missed the deadline, the amount would have escalated by at least £875.

Handsworth case:

Mr B Richardson bought a garden apartment in Handsworth in November 2009. The question was if we could approximate the price could be to extend the lease by ninety years. Comparative homes in Handsworth with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 invoiced monthly. The lease expired on 17 February 2081. Having 55 years left we approximated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 not including expenses.

Handsworth case:

Last month we were approach by Dr B Khan , who moved into a first floor apartment in Handsworth in April 2008. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Identical residencies in Handsworth with 100 year plus lease were valued around £295,000. The average amount of ground rent was £50 billed annually. The lease terminated in 2101. Having 75 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.