Top reasons for Kidderminster lease extension

Top reasons for lease extension now:

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

It’s a harsh truth that a Kidderminster residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Kidderminster property market.Once your lease nears 85ish years, you should 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 falls lower than eighty years - otherwise a higher amount will be due. The majority of flat owners in Kidderminster will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the process.

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

Leasehold premises in Kidderminster with more than 100 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may not issue a mortgage on a short lease

Banks and building societies are inclined not grant a mortgage on short residential leases. You are likely to encounter difficulties if you wish to sell your flat in Kidderminster if the remaining term of your lease is under the criteria set by the majority of banks and building societies. Different mortgage companies have different criteria but in the main theyrequire a minimum remaining lease term of seventy years.

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

Irrespective of whether you are a tenant or a landlord in Kidderminster,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kidderminster valuers.

Kidderminster Lease Extension Case Studies:

Leo, Kidderminster, Worcestershire

In 2014 Leo, started to get near to the 80-year mark with the lease on his studio flat in Kidderminster. Having purchased his home 19 years ago, the lease term was of no concern. Thankfully, he noticed he needed to take action soon on Extending the lease. Leo was able to extend his lease at the eleventh hour in April. Leo and the landlord subsequently settled on sum of £5,000 . If he had missed the deadline, the sum would have gone up by a minimum £1,050.

Kidderminster case:

Dr Jonathan James owned a basement flat in Kidderminster in November 2008. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical homes in Kidderminster with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected monthly. The lease ended on 20 January 2104. Given that there were 78 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.

Kidderminster case:

Mr P Martinez bought a one bedroom apartment in Kidderminster in April 2012. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparable premises in Kidderminster with an extended lease were in the region of £267,600. The average ground rent payable was £65 billed per annum. The lease end date was in 2093. Having 67 years left we estimated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 not including legals.