Top reasons for Wednesfield lease extension

Main reasons to commence your Wednesfield lease extension today:

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

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Wednesfield. Inevitably, the period of lease remaining reduces as time goes by. This is often ignored and only raises itself as an issue when the property needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Wednesfield have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Wednesfield lease extension. Holding off that expense now only increases the price you will ultimately incur for a lease extension

Wednesfield property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Banks and Building Societies may not lend on a short lease

Lending institutions have specific criteria when loaning funds charged on leasehold property. Some will simply refrain from lending at all once the residual lease term slips lower than a certain unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired below seventy years suitable security. As well as impacting your ability to sell, it is also relevant where you are seeking to refinance your Wednesfield home.

What makes us experts in Wednesfield lease extensions?

The conveyancers that we work with undertake Wednesfield 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 conveyancer we work with provide it.

Wednesfield Lease Extension Example Cases:

Andrew, Wednesfield, Birmingham

Last October Andrew, came precariously near to the eighty-year mark with the lease on his two bedroom apartment in Wednesfield. Having purchased his property 19 years ago, the unexpired term was of no interest. Fortunately, he noticed he needed to take action soon on Extending the lease. Andrew arranged for a lease extension just under the wire in January. Andrew and the landlord ultimately agreed on the final figure of £5,500 . If the lease had gone lower than eighty years, the premium would have escalated by at least £925.

Wednesfield case:

In 2013 we were phoned by Mr and Mrs. P Taylor who, having was assigned a lease of a one bedroom apartment in Wednesfield in April 2012. We are asked if we could approximate the price would be to extend the lease by 90 years. Similar premises in Wednesfield with 100 year plus lease were in the region of £174,200. The average amount of ground rent was £55 invoiced every twelve months. The lease expired on 7 November 2077. Taking into account 51 years remaining we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including fees.

Wednesfield case:

Last September we were contacted by Mr Jonathan Dupont , who completed a purpose-built flat in Wednesfield in September 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative flats in Wednesfield with 100 year plus lease were valued about £285,000. The average amount of ground rent was £45 collected quarterly. The lease came to a finish in 2097. Considering the 71 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.