Why you should commence your Penn and Ettingshall lease extension

Why you should commence your Penn and Ettingshall lease extension today:

Increase your lease and increase your Penn and Ettingshall property value

Unfortunately that a Penn and Ettingshall residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Penn and Ettingshall property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be due. The majority of flat owners in Penn and Ettingshall will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.

An extended lease is almost the same value as a freehold

Leasehold premises in Penn and Ettingshall with over 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions may not issue a mortgage with a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the property over which the home loan is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. Historically banks would lend on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Penn and Ettingshall?

Irrespective of whether you are a tenant or a landlord in Penn and Ettingshall,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Penn and Ettingshall valuers.

Penn and Ettingshall Lease Extension Example Cases:

Kate, Penn and Ettingshall, Birmingham,

Following unsuccessful negotiations with the freeholder of her leasehold apartment in Penn and Ettingshall, Kate started the lease extension process just as the lease was approaching the crucial 80-year threshold. The lease extension was concluded in January 2008. The landlord’s charges were kept to an absolute minimum.

Penn and Ettingshall case:

Last Spring we were phoned by Mrs G Gómez , who was assigned a lease of a first floor flat in Penn and Ettingshall in July 1998. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Identical residencies in Penn and Ettingshall with a long lease were valued about £250,000. The mid-range amount of ground rent was £50 billed yearly. The lease ended in 2095. Given that there were 69 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.

Penn and Ettingshall case:

Last Spring we were e-mailed by Mr and Mrs. E Bell , who moved into a one bedroom apartment in Penn and Ettingshall in June 2002. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Similar residencies in Penn and Ettingshall with an extended lease were valued around £285,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease termination date was on 26 September 2106. Having 80 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.