Why you should commence your Oldbury lease extension

Why you should commence your Oldbury lease extension today:

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

There is no doubt about it a leasehold flat or house in Oldbury is a wasting asset as a result of the shortening lease. If the lease has, over one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Oldbury will qualify for this right; however a lawyer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

Leasehold premises in Oldbury with more than one hundred years outstanding on the lease are sometimes referred to as ‘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 buying the freehold unless savings on ground rent and estate charges justify it.

Lenders will not grant a mortgage on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. Historically lenders would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Oldbury lease extensions?

Engaging our service will provide you better control over the value of your Oldbury leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Oldbury Lease Extension Case Summaries:

Eliot, Oldbury, Birmingham,

Eliot owned a high value apartment in Oldbury on the market with a lease of a few days over fifty eight years unexpired. Eliot informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be payable on a lease extension were Eliot to invoke his statutory right. Eliot procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.

Oldbury case:

Mr and Mrs. B Roberts owned a one bedroom flat in Oldbury in November 1997. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar flats in Oldbury with a long lease were in the region of £260,200. The average amount of ground rent was £65 invoiced quarterly. The lease terminated in 2092. Having 66 years as a residual term we calculated the premium to the landlord to extend the lease to be between £16,200 and £18,600 plus professional charges.

Oldbury case:

Last year we were contacted by Dr Tommy Thomas , who owned a garden flat in Oldbury in September 1999. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical residencies in Oldbury with an extended lease were worth £198,800. The mid-range amount of ground rent was £55 billed every twelve months. The lease expiry date was in 2081. Having 55 years outstanding we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of professional charges.