Why you should start your Lozells lease extension

Top reasons for lease extension now:

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

With a residential leasehold property in Lozells, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than eighty years left. Leasehold owners in Lozells with a lease nearing 81 years left should seriously consider extending it as soon as possible. When the lease term has below eighty years outstanding, under the relevant Act the freeholder can calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is due.

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

It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.

Lending institutions may not grant a mortgage on a short lease

Many mortgage lenders insist on a lengthy amount of time remaining on any leasehold property before they will consider it as adequate security. Even if you don't require a mortgage, you should keep in mind that it is probable that someone intending to buy your property in the future might well do, so in the event that they are not able to secure a mortgage, then the market price of the property could suffer. Since 2008 many mortgage lenders have increased the required minimum lease length that they are prepared to accept

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

The lawyers that we work with undertake Lozells 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 lawyer we work with provide it.

Lozells Lease Extension Example Cases:

Gabriel, Lozells, Birmingham

18 months ago Gabriel, came very near to the 80-year mark with the lease on his studio apartment in Lozells. In buying his home 18 years ago, the unexpired term was of little relevance. Fortunately, he noticed he would imminently be paying an escalated premium for Extending the lease. Gabriel arranged for a lease extension just under the wire in July. Gabriel and the freeholder in the end settled on the final figure of £6,000 . If the lease had descended lower than 80 years, the figure would have gone up by a minimum £1,100.

Lozells case:

In 2013 we were called by Mr and Mrs. D Peterson who, having acquired a one bedroom flat in Lozells in February 2009. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Comparative premises in Lozells with 100 year plus lease were in the region of £183,600. The mid-range amount of ground rent was £65 collected per annum. The lease came to a finish on 27 March 2083. Having 57 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of expenses.

Lozells case:

Mr and Mrs. F Patel moved into a purpose-built apartment in Lozells in August 2012. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable premises in Lozells with a long lease were valued around £250,000. The average ground rent payable was £50 collected yearly. The lease ran out in 2094. Considering the 68 years outstanding we calculated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 not including professional charges.