Why you should start your Washwood Heath lease extension

Why you should start your Washwood Heath lease extension today:

A Washwood Heath lease depreciates with the years remaining on the lease.

It’s a harsh truth that a Washwood Heath residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Washwood Heath property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Washwood Heath will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.

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

Leasehold premises in Washwood Heath with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lenders will not issue a mortgage on a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by banks has increased. In the past lenders were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Washwood Heath lease extensions?

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

Washwood Heath Lease Extension Case Studies:

Toby, Washwood Heath, Birmingham,

Toby was the the leasehold owner of a conversion flat in Washwood Heath being marketed with a lease of fraction over 61 years left. Toby on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Toby to exercise his statutory right. Toby procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.

Washwood Heath case:

Last month we were called by Ms O Morris , who was assigned a lease of a one bedroom apartment in Washwood Heath in July 2012. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparative properties in Washwood Heath with 100 year plus lease were valued about £290,000. The mid-range ground rent payable was £45 billed annually. The lease concluded in 2099. Taking into account 73 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.

Washwood Heath case:

Last Christmas we were called by Dr T Williams , who owned a newly refurbished apartment in Washwood Heath in April 2003. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparable flats in Washwood Heath with 100 year plus lease were worth £240,600. The average amount of ground rent was £60 billed per annum. The lease finished on 13 April 2088. Given that there were 62 years unexpired we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 plus fees.