Why you should commence your Little Bromwich lease extension

Why you should commence your Little Bromwich lease extension today:

Increase your lease and increase your Little Bromwich property value

Little Bromwich leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Little Bromwich residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Little Bromwich you must see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

Little Bromwich property with a lease extension has roughly the same value as a freehold

Leasehold premises in Little Bromwich with in excess of one hundred years remaining 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 buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies will not grant a mortgage on a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to become nervous at around 75 years. This will cause difficulties when you wish to dispose of or remortgage your property as it will be effectively unmortgageable. You might not have an imminent plan to sell but when you do your purchaser must hold off for 2 years before being able to initiate the legal procedures for a lease extension.

Get in touch with one of our Little Bromwich lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Little Bromwich,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Little Bromwich valuers.

Little Bromwich Lease Extension Case Summaries:

Toby, Little Bromwich, Birmingham

Half a year ago Toby, came seriously close to the 80-year mark with the lease on his studio flat in Little Bromwich. In buying his home two decades ago, the lease term was of little concern. As luck would have it, he became aware that he needed to take action soon on a lease extension. Toby arranged for a lease extension just under the wire in August. Toby and the landlord who owned the flat above eventually agreed on sum of £6,000 . If he failed to meet the deadline, the premium would have become more exhorbitant by a minimum £1,050.

Little Bromwich case:

In 2013 we were contacted by Mr J Campbell who, having took over the lease of a purpose-built apartment in Little Bromwich in November 2010. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical properties in Little Bromwich with an extended lease were worth £201,200. The average ground rent payable was £55 invoiced per annum. The lease finished on 22 August 2081. Considering the 56 years remaining we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including fees.

Little Bromwich case:

In 2009 we were phoned by Mrs R Richardson who, having took over the lease of a recently refurbished apartment in Little Bromwich in March 1995. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical properties in Little Bromwich with 100 year plus lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease finished in 2101. Taking into account 76 years unexpired we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.