Top reasons for Streetly lease extension

Main reasons to commence your Streetly lease extension today:

Increase your lease and increase your Streetly property value

With a domestic leasehold premises in Streetly, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than eighty years remaining. Residents in Streetly with a lease nearing 81 years remaining should seriously think of extending it without delay. When a lease has less than eighty years left, under the current statute the freeholder can calculate and charge a larger amount, based on a technical computation, known as “marriage value” which is payable.

Streetly property with a lease extension is almost the same value as a freehold

Leasehold properties in Streetly with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lenders may not lend on a short lease

Mortgage companies do not like short residential leases. You most probably experience problems if you wish to sell your flat in Streetly if the remaining term of your lease is less than the criteria set by most banks and building societies. Different lenders have varying requirements but generally theyrequire an unexpired term of at least 65 years.

Get in touch with one of our Streetly lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Streetly,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Streetly valuers.

Streetly Lease Extension Example Cases:

Theo, Streetly, Birmingham

Last October Theo, started to get near to the eighty-year threshold with the lease on his studio apartment in Streetly. Having bought his flat 19 years previously, the lease term was of minimal bearing. Thankfully, he became aware that he needed to take steps soon on a lease extension. Theo arranged for a lease extension just under the wire in August. Theo and the freeholder via the managing agents ultimately agreed on the final figure of £5,000 . If the lease had descended below 80 years, the figure would have increased by a minimum £850.

Streetly case:

Dr Bethan López purchased a one bedroom flat in Streetly in January 2001. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical residencies in Streetly with 100 year plus lease were in the region of £243,000. The mid-range amount of ground rent was £65 invoiced annually. The lease lapsed on 19 February 2089. Taking into account 63 years left we estimated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus fees.

Streetly case:

Ms Niamh Bailey purchased a studio apartment in Streetly in July 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Streetly with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 collected monthly. The lease lapsed in 2078. Taking into account 52 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus professional charges.