Main reasons to commence your Rubery lease extension

Why you should commence your Rubery lease extension today:

A Rubery lease depreciates with the years remaining on the lease.

With a long leasehold property in Rubery, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are fewer than 80 years left. Anyone in Rubery with a lease drawing near to 81 years left should seriously think of extending it sooner than later. When the lease term has below eighty years left, under the current legislation the landlord can calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is payable.

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

Leasehold properties in Rubery with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lenders may not loan monies with a short lease

Most mortgage lenders have narrowed their lending criteria in recent years and borrowers are encountering difficulties in arranging funding or re-mortgage against flats with shorter lease terms, particularly under seventy years as they are deemed to be insufficient for lending purposes.

What makes us experts in Rubery lease extensions?

Regardless of whether you are a tenant or a freeholder in Rubery,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rubery valuers.

Rubery Lease Extension Example Cases:

Cameron, Rubery, Birmingham,

Cameron owned a studio apartment in Rubery being sold with a lease of a little over 59 years left. Cameron on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord 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 £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Cameron to invoke his statutory right. Cameron procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the property.

Rubery case:

Last August we were phoned by Mr and Mrs. N Leroy , who was assigned a lease of a recently refurbished apartment in Rubery in March 2009. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Rubery with 100 year plus lease were valued about £267,600. The average ground rent payable was £65 collected every twelve months. The lease finished in 2093. Taking into account 67 years outstanding we approximated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of costs.

Rubery case:

In 2013 we were called by Mr Aaron Jackson who, having completed a one bedroom flat in Rubery in February 2009. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable residencies in Rubery with a long lease were valued around £206,200. The average ground rent payable was £55 billed per annum. The lease ran out on 22 May 2082. Considering the 56 years outstanding we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including costs.