Sutton Coldfield leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Sutton Coldfield tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Sutton Coldfield you really ought to check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Sutton Coldfield leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is actioned without delay
Leasehold properties in Sutton Coldfield with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Virgin |
Using our service gives you better control over the value of your Sutton Coldfield leasehold, as your property will be more valuable and marketable 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.
Eliot was the the leasehold proprietor of a 2 bedroom apartment in Sutton Coldfield on the market with a lease of fraction over 61 years left. Eliot informally contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Eliot to exercise his statutory right. Eliot obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the property.
Last Summer we were called by Dr H Laurent , who bought a recently refurbished apartment in Sutton Coldfield in August 2003. The question was if we could estimate the premium would be to extend the lease by an additional years. Similar properties in Sutton Coldfield with a long lease were valued about £242,600. The mid-range ground rent payable was £45 invoiced monthly. The lease expired on 12 September 2093. Considering the 67 years left we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 not including professional charges.
In 2014 we were approached by Ms Rhiannon Watson who, having completed a first floor apartment in Sutton Coldfield in June 1996. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar premises in Sutton Coldfield with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease elapsed in 2104. Taking into account 78 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.