Main reasons to commence your Rednal lease extension

Why you should start your Rednal lease extension today:

A Rednal lease depreciates with the years remaining on the lease.

The nearer a residential lease in Rednal nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Many flat owners in Rednal will meet the qualifying criteria; nevertheless a conveyancer will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

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

Leasehold properties in Rednal with over 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 buying the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies may not issue a mortgage on a short lease

Mortgage companies are making their criteria more stringent and many now expect flats to have at least sixty if not seventy years remaining once the mortgage has expired. As many flats in Rednal were built in the fifties, sixties and seventies as a result many now require lease extensions if they if they are to be mortgageable.

Why use us for your lease extension in Rednal?

Retaining our service gives you increased control over the value of your Rednal leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Rednal Lease Extension Case Studies:

Toby, Rednal, Birmingham,

Toby was the the leasehold owner of a conversion flat in Rednal being sold with a lease of a little over 72 years remaining. Toby informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would 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 handle with the matter and ending up with a market value flat.

Rednal case:

Last month we were approach by Mr and Mrs. Y Bernard , who moved into a basement apartment in Rednal in September 1995. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparative homes in Rednal with an extended lease were in the region of £235,600. The average amount of ground rent was £60 billed annually. The lease expiry date was in 2088. Taking into account 62 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of professional charges.

Rednal case:

Last September we were called by Ms Amber Brown , who bought a one bedroom apartment in Rednal in October 2006. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Comparative homes in Rednal with a long lease were valued around £174,200. The average amount of ground rent was £55 invoiced monthly. The lease came to a finish in 2077. Considering the 51 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus fees.