Why you should commence your Rowley Regis lease extension

Top reasons for lease extension now:

A Rowley Regis leasehold property depreciates with the years remaining on the lease.

The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Rowley Regis may extend the lease for an additional 90 years under statute. Do give careful consideration before delaying your Rowley Regis lease extension. Shelving that expense today simply increases the premium you will ultimately be required to pay for a lease extension.

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

Leasehold premises in Rowley Regis with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.

Mortgage lenders may decide not to lend with a short lease

Mortgage lenders have specific criteria when loaning monies secured on leasehold property. Many will simply refrain from lending at all once the remaining lease term slips under a specified unexpired lease term. Many Lending institutions will not regard property with a remaining below 75 years as adequate security. As well as impacting your ability to sell, it is also relevant where you are wanting to remortgage your Rowley Regis home.

What makes us experts in Rowley Regis lease extensions?

The lawyers that we work with handle Rowley Regis 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.

Rowley Regis Lease Extension Case Summaries:

Sophie, Rowley Regis, Birmingham,

Following lengthy negotiations with the freeholder of her ground floor flat in Rowley Regis, Sophie commenced the lease extension process as the eighty year threshold was swiftly advancing. The legal work was finalised in April 2005. The landlord’s costs were restricted to a tad over 700 GBP.

Rowley Regis case:

Last Spring we were contacted by Ms O Davis , who completed a garden apartment in Rowley Regis in November 2000. The question was if we could estimate the price would be to extend the lease by a further 90 years. Comparative residencies in Rowley Regis with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 billed monthly. The lease finished in 2095. Given that there were 69 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.

Rowley Regis case:

Ms Ella Brown completed a ground floor flat in Rowley Regis in February 2011. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Similar properties in Rowley Regis with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced annually. The lease terminated on 23 June 2106. Having 80 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.