Main reasons to commence your Harborne lease extension

Main reasons to commence your Harborne lease extension today:

A Harborne lease depreciates with the years remaining on the lease.

Harborne leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Harborne will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not be entitled. There are also strict timetables and steps to follow once the process has commenced so it’s best to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Harborne with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders may not loan monies on a short lease

Nearly all banks and building societies insist on a lengthy amount of time left on any leasehold residence before they will consider it as adequate security. Regardless of whether you need a mortgage, you should keep in mind that it is likely that someone intending to buy your property in the future might well do, so where they are unable to obtain a mortgage, then the market price of your property will likely suffer. Since 2008 many mortgage lenders have increased the required minimum lease length that they are willing to accept

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

Lease extensions in Harborne can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in this area.

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 procuring Harborne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Harborne Lease Extension Example Cases:

Hannah, Harborne, Birmingham,

In the wake of 9 months of lengthy discussions with the freeholder of her basement flat in Harborne, Hannah initiated the lease extension process as the eighty year mark was rapidly coming. The legal work was concluded in February 2009. The freeholder’s costs were restricted to less than 450 pounds.

Harborne case:

In 2014 we were called by Dr Erin Wilson who, having moved into a one bedroom flat in Harborne in September 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Identical homes in Harborne with 100 year plus lease were valued around £255,000. The average ground rent payable was £50 billed quarterly. The lease ended on 23 May 2097. Considering the 71 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.

Harborne case:

Last Autumn we were called by Mrs Alexandra Smith , who completed a newly refurbished apartment in Harborne in January 2003. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Comparable residencies in Harborne with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed quarterly. The lease concluded on 19 August 2077. Having 51 years remaining we approximated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 not including costs.