Why you should commence your Handsworth lease extension

Top reasons for lease extension now:

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

Handsworth leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Handsworth will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some situations you may not qualify. There are prescribed timetables and formalities to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may not grant a mortgage with a short lease

Almost all mortgage lenders will not lend on a lease with under seventy years left to run - although this varies between mortgage companies. A purchaser will undoubtedly find it difficult in obtaining a mortgage and this will result in your Handsworth property becoming difficult to sell or refinance.

What makes us experts in Handsworth lease extensions?

Lease extensions in Handsworth can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Handsworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Handsworth Lease Extension Case Summaries:

Louise, Handsworth, Birmingham,

Following unsuccessful negotiations with the landlord of her studio apartment in Handsworth, Louise initiated the lease extension process as the 80 year mark was fast approaching. The legal work was concluded in July 2011. The landlord’s costs were kept to an absolute minimum.

Handsworth case:

Last Autumn we were contacted by Mr and Mrs. M Walker , who owned a studio flat in Handsworth in May 1998. We are asked if we could estimate the price could be to prolong the lease by ninety years. Identical residencies in Handsworth with an extended lease were worth £223,400. The mid-range amount of ground rent was £60 invoiced quarterly. The lease came to a finish in 2085. Given that there were 59 years remaining we calculated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 not including expenses.

Handsworth case:

In 2013 we were approached by Dr S Martinez who, having purchased a garden flat in Handsworth in October 1995. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar homes in Handsworth with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease terminated on 15 October 2105. Considering the 79 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.