Top reasons for Shillington lease extension

Top reasons for lease extension now:

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

Shillington residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.

An extended lease is almost the same value as a freehold

Leasehold residencies in Shillington with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘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 freehold unless savings on ground rent and service charges warrant it.

Lenders may decide not to issue a mortgage on a short lease

Mortgage companies are really clamping down as regards to properties in Shillington with short leases. For instance you may find that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you needed to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus narrowing the number of potential purchasers.

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

The conveyancing solicitors that we work with undertake Shillington 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.

Shillington Lease Extension Case Studies:

Isabelle, Shillington, Bedfordshire,

After lengthy negotiations with the freeholder of her two bedroom apartment in Shillington, Isabelle started the lease extension process as the eighty year threshold was quickly advancing. The lease extension completed in November 2006. The landlord’s fees were negotiated to approximately 650 pounds.

Shillington case:

Dr I Rivera owned a one bedroom flat in Shillington in April 2007. We are asked if we could estimate the price would be to extend the lease by an additional years. Identical properties in Shillington with 100 year plus lease were in the region of £233,200. The average ground rent payable was £60 billed annually. The lease elapsed on 13 January 2087. Given that there were 61 years remaining we approximated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 exclusive of legals.

Shillington case:

Dr Ethan Ramírez moved into a purpose-built apartment in Shillington in August 2012. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical residencies in Shillington with an extended lease were worth £171,800. The average ground rent payable was £55 collected every twelve months. The lease came to a finish in 2076. Having 50 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 not including legals.