Why you should start your Kingswinford lease extension

Why you should start your Kingswinford lease extension today:

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

When it comes to residential leasehold premises in Kingswinford, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Leasehold owners in Kingswinford with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When a lease has less than 80 years left, under the relevant Act the freeholder can calculate and demand a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.

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

Leasehold properties in Kingswinford with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may not loan monies on a short lease

The propensity since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past banks would lend on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in Kingswinford lease extensions?

The lawyers that we work with undertake Kingswinford 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.

Kingswinford Lease Extension Case Summaries:

Harrison, Kingswinford, Birmingham

Last October Harrison, started to get near to the 80-year threshold with the lease on his two bedroom flat in Kingswinford. Having purchased his home two decades ago, the length of the lease was of no significance. by good luck, he noticed he would imminently be paying way over the odds for Extending the lease. Harrison was able to extend his lease at the eleventh hour in September. Harrison and the freeholder subsequently agreed on the final figure of £5,000 . If he not met the deadline, the sum would have escalated by at least £1,050.

Kingswinford case:

Mr and Mrs. O Mercier purchased a basement apartment in Kingswinford in July 2009. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable residencies in Kingswinford with 100 year plus lease were valued around £255,000. The average ground rent payable was £50 invoiced yearly. The lease finished on 22 June 2097. Taking into account 71 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.

Kingswinford case:

In 2011 we were contacted by Mrs Paige François who, having bought a one bedroom apartment in Kingswinford in October 1998. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparable residencies in Kingswinford with a long lease were in the region of £254,200. The mid-range ground rent payable was £60 invoiced yearly. The lease terminated on 10 October 2077. Having 51 years left we approximated the premium to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of costs.