Top reasons for Little Bromwich lease extension

Why you should commence your Little Bromwich lease extension today:

Increase your lease and increase your Little Bromwich property value

Little Bromwich 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 your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Little Bromwich residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Little Bromwich you should check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

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

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to get concerned at around 75 years. This may be problematic once you wish to sell or refinance your property as it will be effectively unmortgageable. You might not have an immediate plan to sell but when you do your buyer must hold off for a couple of years before being able to exercise the right to a a lease extension.

Why use us for your lease extension in Little Bromwich?

Irrespective of whether you are a tenant or a landlord in Little Bromwich,the lease extension solicitors 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 Little Bromwich valuers.

Little Bromwich Lease Extension Case Summaries:

Lucas, Little Bromwich, Birmingham

In 2014 Lucas, came dangerously near to the 80-year mark with the lease on his ground floor apartment in Little Bromwich. In buying his property two decades ago, the unexpired term was of little interest. As luck would have it, he became aware that he would imminently be paying an inflated amount for Extending the lease. Lucas arranged for a lease extension just ahead of time last April. Lucas and the landlord ultimately settled on the final figure of £5,000 . If the lease had slid below eighty years, the sum would have escalated by at least £975.

Little Bromwich case:

In 2009 we were called by Dr V Lewis who, having purchased a garden flat in Little Bromwich in August 2009. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparable flats in Little Bromwich with a long lease were worth £225,800. The average amount of ground rent was £60 invoiced monthly. The lease expired on 27 January 2086. Given that there were 60 years left we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 plus professional charges.

Little Bromwich case:

Mr Arthur Bailey was assigned a lease of a ground floor apartment in Little Bromwich in March 2004. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative homes in Little Bromwich with an extended lease were valued about £210,000. The mid-range amount of ground rent was £50 billed quarterly. The lease lapsed in 2106. Considering the 80 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.