Top reasons for Ladywood lease extension

Main reasons to commence your Ladywood lease extension today:

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

As the length of the unexpired term of a Ladywood residential lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of 100 years to run then this decrease may be fractional that being said there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner as opposed to later. Many flat owners in Ladywood will qualify for this right; nevertheless a lawyer should be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

Ladywood property with a lease extension has roughly the same value as a freehold

Leasehold properties in Ladywood with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies will not grant a mortgage on a short lease

Mortgage companies are tightening their criteria and many now require flats to have at least 60 if not 70 years left once the mortgage has expired. Given that many flats in Ladywood were built in the fifties, sixties and seventies as a result many now require lease extensions if they if they are to be mortgageable.

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

Irrespective of whether you are a tenant or a freeholder in Ladywood,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ladywood valuers.

Ladywood Lease Extension Example Cases:

Callum, Ladywood, Birmingham

During the course of the last few months Callum, came perilously near to the 80-year mark with the lease on his first floor flat in Ladywood. In buying his flat two decades ago, the unexpired term was of minimal bearing. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Callum was able to extend his lease at the eleventh hour last August. Callum and the landlord who owned the flat above subsequently agreed on the final figure of £5,500 . If the lease had dipped below eighty years, the figure would have increased by a minimum £1,150.

Ladywood case:

Mr and Mrs. U Morgan acquired a one bedroom apartment in Ladywood in March 2006. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparable premises in Ladywood with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced annually. The lease concluded on 10 October 2105. Having 79 years remaining we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.

Ladywood case:

Mr Luca Hill purchased a one bedroom apartment in Ladywood in July 2005. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Ladywood with a long lease were worth £193,400. The mid-range ground rent payable was £65 billed monthly. The lease expiry date was in 2085. Given that there were 59 years unexpired we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including expenses.