Why you should commence your Wolverhampton lease extension

Top reasons for lease extension now:

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

Wolverhampton residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with in excess of one hundred 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 residence will be equivalent in value to a freehold for many years in the future.

Lending institutions will not grant a mortgage with a short lease

Lenders are really restricting their approach as regards to properties in Wolverhampton with short leases. For example you might discover that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you wanted to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus limiting your market.

Why use us for your lease extension in Wolverhampton?

The conveyancers that we work with undertake Wolverhampton 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 lawyer we work with provide it.

Wolverhampton Lease Extension Case Summaries:

Luca, Wolverhampton, Birmingham,

Luca owned a studio apartment in Wolverhampton being marketed with a lease of a little over 61 years outstanding. Luca on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Luca to exercise his statutory right. Luca procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.

Wolverhampton case:

Mr William Fournier bought a studio apartment in Wolverhampton in October 2006. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative homes in Wolverhampton with an extended lease were valued about £275,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ran out in 2103. Taking into account 77 years outstanding we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including professional charges.

Wolverhampton case:

Last Summer we were phoned by Mr R Rogers , who took over the lease of a basement flat in Wolverhampton in May 2009. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Identical residencies in Wolverhampton with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 invoiced annually. The lease ran out in 2083. Considering the 57 years remaining we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.