Main reasons to start your Small Heath lease extension

Top reasons for lease extension now:

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

The only way is down when it comes to Small Heath lease terms. Small Heath flats that have a residual term fewer than 80 years will de-escalate in value at a rapid rate, and the cost to extend your lease will rise.

Small Heath property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.

Banks and Building Societies may decide not to finance a property on a short lease

Banks and Building Societies have specific criteria when lending funds charged on leasehold property. Some will simply refrain from lending at all once an unexpired lease term goes below a specified unexpired lease term. Many Banks and Building Societies will not consider property with a remaining below 75 years as acceptable security. In addition to impacting your ability to sell, it is also relevant if you are seeking to refinance your Small Heath home.

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 solicitors 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 Small Heath valuers.

Small Heath Lease Extension Case Studies:

Caitlin, Small Heath, Birmingham,

Following unsuccessful discussions with the landlord of her basement flat in Small Heath, Caitlin commenced the lease extension process as the 80 year deadline was fast nearing. The transaction completed in September 2006. The freeholder’s costs were kept to an absolute minimum.

Small Heath case:

Last Christmas we were called by Mrs J Clark , who owned a one bedroom apartment in Small Heath in October 2002. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative premises in Small Heath with a long lease were in the region of £193,400. The average amount of ground rent was £65 collected every twelve months. The lease ran out in 2085. Given that there were 59 years outstanding we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of legals.

Small Heath case:

Last Summer we were contacted by Mr and Mrs. W Roberts , who owned a purpose-built apartment in Small Heath in July 2001. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Identical residencies in Small Heath with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 collected yearly. The lease terminated on 27 October 2096. Given that there were 70 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 plus costs.