Why you should start your Wednesbury lease extension

Main reasons to commence your Wednesbury lease extension today:

Increase your lease and increase your Wednesbury property value

The closer a residential lease in Wednesbury nears to zero years unexpired, the more it reduces the value of the property. If the lease has, over one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Many flat owners in Wednesbury will meet the qualifying criteria; however a conveyancer can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold premises in Wednesbury with in excess of one hundred years left 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders may not loan monies on a short lease

The propensity since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the property over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past lenders were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Wednesbury?

The conveyancing solicitors that we work with undertake Wednesbury lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Wednesbury Lease Extension Example Cases:

Niamh, Wednesbury, Birmingham,

After protracted negotiations with the landlord of her two bedroom apartment in Wednesbury, Niamh initiated the lease extension process as the eighty year threshold was quickly nearing. The legal work was finalised in August 2012. The landlord’s fees were negotiated to less than 450 GBP.

Wednesbury case:

Last April we were phoned by Dr Michael Michel , who purchased a studio apartment in Wednesbury in February 1997. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar flats in Wednesbury with an extended lease were valued about £176,200. The average ground rent payable was £65 billed every twelve months. The lease concluded on 7 January 2082. Considering the 56 years outstanding we calculated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus costs.

Wednesbury case:

Last April we were phoned by Dr George Morel , who purchased a purpose-built flat in Wednesbury in August 1997. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Similar residencies in Wednesbury with a long lease were in the region of £242,600. The average amount of ground rent was £45 billed quarterly. The lease expired in 2093. Considering the 67 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of costs.