Why you should commence your Penn and Ettingshall lease extension

Top reasons for lease extension now:

A Penn and Ettingshall leasehold property depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Penn and Ettingshall. Inevitably, the term of lease left reduces over time. This is often ignored and only raises itself as an issue when the residence needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Penn and Ettingshall have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Do give careful consideration before putting off your Penn and Ettingshall lease extension. Holding off the cost now likely increases the price you will ultimately incur for a lease extension

An extended lease is almost the same value as a freehold

Leasehold properties in Penn and Ettingshall with more than 100 years left on the lease are often 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 buying the freehold unless savings on ground rent and service charges warrant it.

Banks and Building Societies will not finance a property on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. Historically banks would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in Penn and Ettingshall lease extensions?

Regardless of whether you are a tenant or a freeholder in Penn and Ettingshall,the lease extension solicitors 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 Penn and Ettingshall valuers.

Penn and Ettingshall Lease Extension Case Studies:

Luke, Penn and Ettingshall, Birmingham,

Luke owned a high value apartment in Penn and Ettingshall being sold with a lease of a few days over sixty years outstanding. Luke on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Luke to invoke his statutory right. Luke obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.

Penn and Ettingshall case:

In 2010 we were contacted by Mr and Mrs. P Anderson who, having moved into a one bedroom flat in Penn and Ettingshall in February 2009. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable residencies in Penn and Ettingshall with 100 year plus lease were valued around £246,800. The average ground rent payable was £60 collected per annum. The lease concluded in 2076. Considering the 50 years unexpired we approximated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 plus legals.

Penn and Ettingshall case:

Last Autumn we were contacted by Mr and Mrs. K Martin , who owned a garden flat in Penn and Ettingshall in October 2000. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative flats in Penn and Ettingshall with an extended lease were in the region of £203,200. The average ground rent payable was £65 invoiced monthly. The lease elapsed in 2087. Having 61 years outstanding we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including professional charges.