Our lease extension solicitors in Birmingham are at your service with legal advice and support when dealing with issues related to leasehold properties, or for the extension of the lease, to give some examples. All your questions referring to lease extension can be addressed to our specialists in Birmingham. We are here to provide you with legal advice and support.
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What do you need to know about leasehold extension?
Tenancies established on long terms decrease in length every year, and in some cases, it would be appropriate to extend the lease or think of becoming your own landowner by merging with other renters to buy the freehold of a property. However, there are important things to consider and mostly refer to the length of time for a lease extension. One of the dates refers to the 80-year date from the end of the lease period. After 80 years, normally it turns out to be more costly to extend the tenancy. The second significant date is how long the rent lenders could require. Usually, lenders will ask for a lease that will represent the length of the mortgage and 35 years. This is where our lease extension solicitors in Birmingham can intervene and represent your interests. Here is how we can help:
- Extending the lease.
- Taking over the management of your building.
- Buying the freehold.
The legal procedures and the formalities might seem complex to those who never experienced a situation like this. So, the legal advice and support of a lease extension solicitor in Birmingham will be a great solution.
Can I extend my lease?
Yes, it is important that you have owned the leasehold for at least 2 years, in order to qualify. Regarding the price for extending the lease, both the tenant and the landlord must agree to the new terms. Otherwise, the Leasehold Valuation Tribunal will have to determine the price considering the value of the freeholders’ interest, the proportional split between the landlord, and any intermediate owners costs. Moreover, the lease extension calculator can be used, based on a complete report. Our lease extension solicitors in Birmingham will provide comprehensive legal advice and representation in such cases.
For how long can a lease be extended?
According to the Leasehold Reform Housing and Urban Development Act 1993, the lease can be extended for 90 years. It is strongly recommended to talk to a lease extension solicitor in Birmingham and receive legal advice, no matter if you are a leaseholder or a freeholder. Plus, the entire process might take some time, but our specialists will know how to speed up the process.
Why do I need to extend the lease?
A leasehold is also considered a wasting asset and that because the value of a property decreases in time. On the other hand, a lease with more than 100 years remaining will be more appealing to buyers compared to a lease that comes to an end in a couple of years. More than that, a lease with less than 80 years remaining has an extra cost due to the marriage value, according to the experts in the field. One of our lease extension solicitors in Birmingham will tell you more about these aspects and will provide the necessary legal advice.
The lease extension can be made at any time and on any kind of lease if a mutual agreement between the landowner and the leaseholder is settled and signed.
The qualifying lease
In order to be eligible for a statutory extension, one must have owned the lease for at least two years and originally granted for more than 21 years. Otherwise, the contract must comprise a clause mentioning the continuous renewal. Persons who want to buy a property in UK and also extend the lease can solicit the seller to provide notification upon the landowner before selling. This aspect will allow you to extend the lease without having to own the leasehold for two years in advance.
On the other hand, if you think of extending the lease on an apartment, then the tenancy will not be eligible if the landowner is a charitable accommodation trust or if the lease was approved for business purposes, as is the case of offices.
Here are some facts and figures about properties in UK that you might find useful:
- According to the Office for National Statistics in UK, the average house price in UK was GPB 238,000 in June 2020.
- An increase of 0.4% between May and June 2020 was registered for properties in UK.
- The average house prices in UK, on a seasonally adjusted basis, increased by 2.4% during the same period mentioned above.
If you would like to benefit from the legal services of our lease extension solicitors in Birmingham, please feel free to contact us at any time.