Main reasons to commence your Lichfield lease extension

Top reasons for lease extension now:

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

The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Lichfield may extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Lichfield lease extension. Shelving the costs today simply increases the price you will ultimately be required to pay for a lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Lichfield with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

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

Banks and Building Societies have set criteria when loaning monies charged on leasehold property. Many will simply refrain from lending at all once the residual lease term falls below a specified unexpired lease term. Many Lending institutions will not consider property with a remaining below seventy years as adequate security. In addition to impacting your ability to sell, it is also relevant where you are intending to remortgage your Lichfield property.

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

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

Lichfield Lease Extension Example Cases:

Luke, Lichfield, Staffordshire,

Luke owned a high value apartment in Lichfield on the market with a lease of a little over 72 years remaining. Luke on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Luke to exercise his statutory right. Luke obtained expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.

Lichfield case:

Dr J Davies purchased a studio flat in Lichfield in November 2001. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Lichfield with a long lease were valued around £275,000. The mid-range ground rent payable was £45 invoiced monthly. The lease lapsed in 2095. Given that there were 69 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.

Lichfield case:

Dr Muhammad Gunderson completed a one bedroom flat in Lichfield in June 2008. We are asked if we could estimate the premium could be to extend the lease by 90 years. Comparative flats in Lichfield with an extended lease were valued about £216,000. The average amount of ground rent was £60 collected every twelve months. The lease elapsed in 2084. Given that there were 58 years outstanding we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.