Main reasons to start your Kingswinford lease extension

Main reasons to start your Kingswinford lease extension today:

Increase your lease and increase your Kingswinford property value

Kingswinford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Kingswinford enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Kingswinford you should investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to grant a mortgage on a short lease

Nearly all mortgage lenders will be unwilling to lend on a lease with under 70 years left to run - although this varies between mortgage companies. A purchaser will no doubt encounter difficulties to obtain a mortgage and this could result in your Kingswinford property being difficult to sell or to obtain finance on.

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

Engaging our service will provide you increased control over the value of your Kingswinford leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Kingswinford Lease Extension Case Studies:

Jayden, Kingswinford, Birmingham,

Jayden owned a 2 bedroom apartment in Kingswinford being marketed with a lease of just over sixty years outstanding. Jayden informally approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Jayden to exercise his statutory right. Jayden procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.

Kingswinford case:

In 2010 we were contacted by Mr and Mrs. B Petit who, having moved into a one bedroom apartment in Kingswinford in October 2005. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Comparative premises in Kingswinford with 100 year plus lease were in the region of £256,600. The mid-range amount of ground rent was £60 billed per annum. The lease ran out in 2078. Taking into account 52 years as a residual term we approximated the premium to the landlord for the lease extension to be within £39,000 and £45,000 plus professional charges.

Kingswinford case:

Last year we were phoned by Mrs Imogen Lefebvre , who owned a purpose-built flat in Kingswinford in September 1996. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Similar homes in Kingswinford with a long lease were valued around £218,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease expired on 20 May 2089. Taking into account 63 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of costs.