Main reasons to commence your Small Heath lease extension

Why you should start your Small Heath lease extension today:

A Small Heath leasehold property depreciates with the years remaining on the lease.

Small Heath leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the current lease dips lower than eighty years - otherwise a higher premium will be due. Leasehold owners in Small Heath will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and procedures to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

Leasehold residencies in Small Heath with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.

Lending institutions will not lend with a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become nervous at around 75 years. This will cause difficulties once you need to market or remortgage your flat as it will be effectively unmortgageable. You might not have an immediate plan to sell but when you do your purchaser will have to hold off for 2 years before they can exercise the right to a a lease extension.

What makes us experts in Small Heath lease extensions?

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

Small Heath Lease Extension Case Studies:

Kayleigh, Small Heath, Birmingham,

Subsequent to protracted negotiations with the freeholder of her one bedroom apartment in Small Heath, Kayleigh initiated the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction was finalised in February 2010. The landlord’s costs were negotiated to under five hundred GBP.

Small Heath case:

In 2014 we were e-mailed by Dr Sophia Girard who, having bought a purpose-built flat in Small Heath in January 2008. We are asked if we could estimate the price could be for a 90 year lease extension. Identical residencies in Small Heath with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 invoiced yearly. The lease concluded on 5 October 2097. Having 71 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.

Small Heath case:

Last Autumn we were phoned by Mrs L Morgan , who purchased a one bedroom flat in Small Heath in November 1999. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Comparative premises in Small Heath with 100 year plus lease were valued about £254,200. The mid-range amount of ground rent was £60 billed quarterly. The lease concluded on 21 October 2077. Given that there were 51 years left we estimated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 plus legals.