Top reasons for Selly Oak lease extension

Why you should commence your Selly Oak lease extension today:

Increase your lease and increase your Selly Oak property value

Unfortunately that a Selly Oak residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Selly Oak property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term dips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to 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 The majority of flat owners in Selly Oak will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may decide not to loan monies on a short lease

Nearly all mortgage lenders insist on a lengthy amount of time remaining on any leasehold residence before they will contemplate it as adequate security. Even if you don't require a mortgage, you should bear in mind that it is probable that someone wishing to buy your property in the future might well do, so if they can't secure a mortgage, then the market price of the property could be adversely impacted. In the last decade most mortgage lenders have increased the required minimum lease length that they are willing to lend on

Why use us for your lease extension in Selly Oak?

The conveyancing solicitors that we work with procure Selly Oak 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 conveyancer we work with provide it.

Selly Oak Lease Extension Case Summaries:

Catherine, Selly Oak, Birmingham,

Off the back of unsuccessful negotiations with the freeholder of her purpose-built apartment in Selly Oak, Catherine commenced the lease extension process as the 80 year deadline was fast coming. The lease extension was finalised in January 2008. The landlord’s costs were restricted to about 550 GBP.

Selly Oak case:

Mr Leo King moved into a one bedroom flat in Selly Oak in July 2011. We are asked if we could estimate the price would be to prolong the lease by ninety years. Similar premises in Selly Oak with an extended lease were worth £280,000. The average amount of ground rent was £55 billed quarterly. The lease expired in 2104. Given that there were 78 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.

Selly Oak case:

Last March we were phoned by Dr G Thompson , who purchased a basement flat in Selly Oak in June 2012. The question was if we could approximate the price would be for a 90 year lease extension. Comparable premises in Selly Oak with a long lease were in the region of £186,000. The average ground rent payable was £65 billed monthly. The lease ended in 2084. Given that there were 58 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £24,700 and £28,600 not including professional charges.