Main reasons to start your Rednal lease extension

Why you should start your Rednal lease extension today:

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

The market value of a leasehold property in Rednal is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is ideal to start the lease extension process when the lease still has 82 years remaining so that formalities can be concluded prior to the eighty year threshold. Leasehold Reform legislation entitles Rednal qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a nominal rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Lending institutions may not finance a property with a short lease

Most mortgage lenders insist on a lengthy amount of time remaining on a leasehold residence before they will consider it as adequate security. Regardless of whether you need a mortgage, you should be conscious that it is likely that someone intending to acquire your property in the future might well do, so if they can't obtain a mortgage, then the financial worth of the property will likely be adversely impacted. Since 2008 many mortgage lenders have increased the required minimum lease length that they are prepared to lend on

What makes us experts in Rednal lease extensions?

The conveyancers that we work with undertake Rednal 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.

Rednal Lease Extension Example Cases:

Arthur, Rednal, Birmingham

Last Autumn Arthur, started to get close to the eighty-year mark with the lease on his purpose- built apartment in Rednal. In buying his home two decades ago, the unexpired term was of little importance. As luck would have it, it dawned on him that he would soon be paying way over the odds for Extending the lease. Arthur arranged for a lease extension just under the wire last August. Arthur and the landlord ultimately settled on sum of £5,000 . If the lease had dipped to less than 80 years, the premium would have increased by at least £875.

Rednal case:

Last Summer we were phoned by Ms P Sharif , who bought a one bedroom flat in Rednal in January 2012. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical properties in Rednal with a long lease were valued about £191,400. The average amount of ground rent was £55 collected monthly. The lease expired on 8 June 2080. Considering the 54 years remaining we estimated the premium to the landlord to extend the lease to be between £34,200 and £39,600 plus fees.

Rednal case:

Last Summer we were approach by Dr V Kelly , who completed a recently refurbished apartment in Rednal in June 1996. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Similar flats in Rednal with an extended lease were valued around £295,000. The average ground rent payable was £45 invoiced monthly. The lease ran out in 2100. Taking into account 74 years left we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.