Top reasons for Redditch lease extension

Top reasons for lease extension now:

Increase your lease and increase your Redditch property value

It’s a harsh certainty that a Redditch residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Redditch property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term slips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Redditch will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the process.

Redditch property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Mortgage lenders will not issue a mortgage on a short lease

The trend since 2008 has been for lenders to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has meant the unexpired lease term required by banks has increased. Historically mortgage companies were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Redditch lease extensions?

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

Redditch Lease Extension Example Cases:

Jennifer, Redditch, Worcestershire,

Following protracted negotiations with the freeholder of her basement flat in Redditch, Jennifer started the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The lease extension was finalised in March 2010. The landlord’s charges were kept to an absolute minimum.

Redditch case:

In 2009 we were phoned by Mr and Mrs. R François who, having completed a one bedroom flat in Redditch in January 2011. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Redditch with 100 year plus lease were valued around £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease terminated in 2097. Having 71 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.

Redditch case:

In 2010 we were contacted by Dr Ashleigh Harris who, having purchased a first floor flat in Redditch in September 2009. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative premises in Redditch with a long lease were in the region of £225,800. The average amount of ground rent was £60 collected quarterly. The lease lapsed on 13 September 2086. Considering the 60 years as a residual term we calculated the premium to the landlord to extend the lease to be within £23,800 and £27,400 not including expenses.