Main reasons to start your Stourbridge lease extension

Main reasons to start your Stourbridge lease extension today:

A Stourbridge leasehold property depreciates with the years remaining on the lease.

With a domestic leasehold premises in Stourbridge, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Anyone in Stourbridge with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. When the lease term has fewer than 80 years remaining, under the current legislation the freeholder can calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

Leasehold premises in Stourbridge with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may decide not to issue a mortgage on a short lease

Almost all banks and building societies will not grant a mortgage on a lease with less than seventy years left to run - although this varies between mortgage companies. A buyer will no doubt find it difficult to obtain a mortgage and this will result in your Stourbridge property becoming difficult to sell or to obtain finance on.

Why use us for your lease extension in Stourbridge?

Regardless of whether you are a tenant or a freeholder in Stourbridge,the lease extension experts 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 Stourbridge valuers.

Stourbridge Lease Extension Case Studies:

Nathan, Stourbridge, Birmingham,

Nathan was the the leasehold owner of a studio flat in Stourbridge being sold with a lease of just over sixty years remaining. Nathan informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Nathan to invoke his statutory right. Nathan procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.

Stourbridge case:

In 2014 we were approached by Dr Felix Harris who, having purchased a studio flat in Stourbridge in March 2009. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Stourbridge with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 billed annually. The lease terminated on 22 July 2100. Having 74 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.

Stourbridge case:

Last Winter we were approach by Ms G Baker , who acquired a first floor flat in Stourbridge in May 1996. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparable homes in Stourbridge with a long lease were in the region of £166,400. The mid-range amount of ground rent was £60 billed annually. The lease terminated on 27 September 2080. Having 54 years remaining we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 plus legals.