Main reasons to commence your Stechford lease extension

Top reasons for lease extension now:

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

Stechford leases on residential deteriorating in value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Stechford will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are prescribed deadlines and procedures to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

Leasehold premises in Stechford with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Banks and Building Societies may decide not to grant a mortgage with a short lease

Many banks and building societies will be unwilling to grant a mortgage on a lease with less than seventy years unexpired - although this varies from lender to lender. A buyer will no doubt encounter difficulties in obtaining a mortgage and this will result in your Stechford property becoming difficult to dispose of or to obtain finance on.

What makes us experts in Stechford lease extensions?

The conveyancing solicitors that we work with handle Stechford 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.

Stechford Lease Extension Example Cases:

Matthew, Stechford, Birmingham,

Matthew owned a high value apartment in Stechford being marketed with a lease of a little over fifty eight years remaining. Matthew informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Matthew to exercise his statutory right. Matthew obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.

Stechford case:

Mr and Mrs. L Petit took over the lease of a studio apartment in Stechford in September 2007. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Identical homes in Stechford with a long lease were in the region of £174,200. The mid-range ground rent payable was £55 billed every twelve months. The lease came to a finish in 2077. Taking into account 51 years left we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including legals.

Stechford case:

Ms Hannah White moved into a studio apartment in Stechford in September 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in Stechford with a long lease were in the region of £285,000. The average ground rent payable was £45 collected yearly. The lease came to a finish in 2097. Considering the 71 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.