Main reasons to commence your Sutton Coldfield lease extension

Top reasons for lease extension now:

Increase your lease and increase your Sutton Coldfield property value

Sutton Coldfield residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Sutton Coldfield with more than 100 years remaining 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may not grant a mortgage on a short lease

Lenders are tightening their criteria and a meaningful number now expect flats to have a minimum of 60 if not 70 years remaining once the mortgage has expired. Considering a number of flats in Sutton Coldfield were built in the 1950s, 1960s and 1970s as a result many now need to be extended if they if they are to be mortgageable.

Why use us for your lease extension in Sutton Coldfield?

Using our service will provide you better control over the value of your Sutton Coldfield leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Sutton Coldfield Lease Extension Example Cases:

Catherine, Sutton Coldfield, Birmingham,

Following protracted correspondence with the landlord of her basement flat in Sutton Coldfield, Catherine initiated the lease extension process as the 80 year threshold was rapidly approaching. The lease extension was concluded in June 2008. The freeholder’s fees were kept to an absolute minimum.

Sutton Coldfield case:

In 2009 we were approached by Mr and Mrs. D Robinson who, having moved into a one bedroom apartment in Sutton Coldfield in June 2000. The question was if we could estimate the premium would be for a ninety year lease extension. Comparative premises in Sutton Coldfield with an extended lease were in the region of £173,800. The mid-range amount of ground rent was £60 collected yearly. The lease elapsed in 2081. Taking into account 55 years remaining we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including fees.

Sutton Coldfield case:

Mrs Alexandra François acquired a ground floor flat in Sutton Coldfield in January 1998. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative properties in Sutton Coldfield with a long lease were worth £235,200. The average ground rent payable was £45 invoiced every twelve months. The lease ran out in 2092. Considering the 66 years unexpired we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.