Main reasons to start your Stourbridge lease extension

Main reasons to start your Stourbridge lease extension today:

Increase your lease and increase your Stourbridge property value

The re-sale value of a leasehold property in Stourbridge is impacted by how long the lease has left to run. If it is near to or less than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that all matters can be addressed ahead of the eighty year threshold. Statute entitles Stourbridge qualifying lessees to an additional term of 90 years on top of the remaining term, at a nominal rent (zero ground rent). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

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

It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for decades to come.

Lenders may not finance a property on a short lease

Most banks have constrained their lending criteria in recent years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly under seventy years as they are regarded as inadequate for lending purposes.

What makes us experts in Stourbridge lease extensions?

Using our service will provide you enhanced control over the value of your Stourbridge leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Stourbridge Lease Extension Case Summaries:

Dexter, Stourbridge, Birmingham,

Dexter was the the leasehold proprietor of a studio flat in Stourbridge being sold with a lease of a little over sixty years remaining. Dexter informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Dexter to invoke his statutory right. Dexter procured expert legal guidance and secured satisfactory resolution informally and sell the property.

Stourbridge case:

Mrs P Cook completed a studio flat in Stourbridge in October 2012. We are asked if we could estimate the price would be to extend the lease by 90 years. Similar premises in Stourbridge with 100 year plus lease were valued around £210,600. The mid-range ground rent payable was £45 collected yearly. The lease terminated in 2088. Given that there were 62 years outstanding we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including legals.

Stourbridge case:

In 2013 we were e-mailed by Ms Samantha Miller who, having acquired a garden flat in Stourbridge in January 1998. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Similar premises in Stourbridge with a long lease were worth £265,000. The average amount of ground rent was £50 invoiced quarterly. The lease elapsed in 2099. Having 73 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.