Why you should start your Ironbridge lease extension

Main reasons to start your Ironbridge lease extension today:

Increase your lease and increase your Ironbridge property value

Unfortunately that a Ironbridge residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Ironbridge property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher premium will be due. Most leasehold owners in Ironbridge will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.

Ironbridge property with a lease extension is almost the same value as a freehold

It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Banks and Building Societies may not finance a property on a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to become jittery at around 75 years. This will cause difficulties once you come to sell or remortgage your property as it will be effectively unmortgageable. Even though you might have no immediate desire to sell but when you do your purchaser will need to wait 2 years before they can exercise the right to a a lease extension.

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

The conveyancers that we work with procure Ironbridge 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.

Ironbridge Lease Extension Case Studies:

Mia, Ironbridge, Shropshire,

Trailing lengthy negotiations with the freeholder of her garden flat in Ironbridge, Mia initiated the lease extension process just as the lease was approaching the crucial 80-year mark. The legal work completed in July 2015. The landlord’s costs were kept to an absolute minimum.

Ironbridge case:

Mr and Mrs. F Girard owned a basement apartment in Ironbridge in January 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Similar residencies in Ironbridge with an extended lease were worth £260,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ended in 2098. Considering the 72 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.

Ironbridge case:

Last Autumn we were called by Dr H Ali , who owned a purpose-built apartment in Ironbridge in June 2001. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Ironbridge with a long lease were in the region of £256,600. The average ground rent payable was £60 invoiced monthly. The lease ran out in 2078. Taking into account 52 years outstanding we calculated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 plus costs.