Why you should start your Chelmsley Wood lease extension

Top reasons for lease extension now:

Increase your lease and increase your Chelmsley Wood property value

When it comes to long leasehold property in Chelmsley Wood, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years left. Residents in Chelmsley Wood with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When a lease has less than 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may not lend with a short lease

Banks and Building Societies have specific criteria when loaning monies secured on leasehold property. Some will simply refuse lend at all once the residual lease term goes below a certain unexpired lease term. Many Mortgage lenders will not consider property with a remaining below 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant where you are wanting to refinance your Chelmsley Wood property.

What makes us experts in Chelmsley Wood lease extensions?

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

Chelmsley Wood Lease Extension Example Cases:

Erin, Chelmsley Wood, Birmingham,

Off the back of lengthy discussions with the landlord of her studio flat in Chelmsley Wood, Erin initiated the lease extension process just as her lease was coming close to the crucial eighty-year mark. The lease extension completed in March 2006. The freeholder’s costs were negotiated to a tad over 500 GBP.

Chelmsley Wood case:

Dr R Wright took over the lease of a one bedroom flat in Chelmsley Wood in August 2005. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparative premises in Chelmsley Wood with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease elapsed on 8 February 2097. Considering the 71 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.

Chelmsley Wood case:

Mr and Mrs. R Fournier took over the lease of a ground floor flat in Chelmsley Wood in March 2001. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical properties in Chelmsley Wood with a long lease were valued about £254,200. The average amount of ground rent was £60 billed annually. The lease expired on 25 September 2077. Considering the 51 years left we estimated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of expenses.