Top reasons for Shaftesbury lease extension

Main reasons to start your Shaftesbury lease extension today:

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

Shaftesbury leases on domestic properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Shaftesbury will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some cases you may not qualify. There are also strict deadlines and procedures to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Lenders may not finance a property on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become jittery at around 75 years. This may be problematic when you wish to dispose of or refinance your flat as it will be effectively unmortgageable. Even though you may not have an immediate desire to sell but when you do your purchaser must wait a couple of years before they can commence the legal procedures for an extension to the lease.

What makes us experts in Shaftesbury lease extensions?

The conveyancing solicitors that we work with procure Shaftesbury 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.

Shaftesbury Lease Extension Example Cases:

Melissa, Shaftesbury, Dorset,

After unsuccessful negotiations with the freeholder of her leasehold flat in Shaftesbury, Melissa commenced the lease extension process as the 80 year deadline was swiftly coming. The lease extension completed in August 2012. The landlord’s fees were restricted to approximately 700 GBP.

Shaftesbury case:

Last month we were called by Mr and Mrs. K Ali , who moved into a first floor flat in Shaftesbury in November 2008. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Identical homes in Shaftesbury with a long lease were worth £250,400. The average amount of ground rent was £65 invoiced monthly. The lease concluded in 2090. Considering the 64 years remaining we calculated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 not including expenses.

Shaftesbury case:

Last October we were contacted by Mr and Mrs. G Harris , who moved into a purpose-built flat in Shaftesbury in May 2010. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Similar homes in Shaftesbury with 100 year plus lease were in the region of £184,000. The average amount of ground rent was £55 invoiced monthly. The lease elapsed in 2079. Taking into account 53 years outstanding we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of expenses.