Why you should commence your Walsall lease extension

Main reasons to commence your Walsall lease extension today:

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

Chances are that if you own a flat in Walsall you actually own a long leasehold interest over your property

An extended lease is almost the same value as a freehold

Leasehold premises in Walsall with more than 100 years left on the lease are sometimes 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders may not loan monies with a short lease

Most banks have constrained their lending criteria in recent years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly below 75 years as they are deemed to be insufficient for lending purposes.

What makes us experts in Walsall lease extensions?

Irrespective of whether you are a tenant or a landlord in Walsall,the lease extension lawyers 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 Walsall valuers.

Walsall Lease Extension Case Studies:

Mason, Walsall, Birmingham,

Mason owned a 2 bedroom apartment in Walsall being sold with a lease of fraction over fifty eight years remaining. Mason on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Mason to exercise his statutory right. Mason obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.

Walsall case:

Mr and Mrs. R Peterson acquired a basement flat in Walsall in August 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Comparable premises in Walsall with a long lease were worth £198,800. The average ground rent payable was £55 billed per annum. The lease expired on 23 May 2081. Having 55 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of expenses.

Walsall case:

In 2009 we were phoned by Mr and Mrs. A Allen who, having owned a garden flat in Walsall in May 1999. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparable properties in Walsall with an extended lease were valued around £300,000. The average amount of ground rent was £50 collected yearly. The lease concluded in 2101. Having 75 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.