Why you should start your Shillington lease extension

Top reasons for lease extension now:

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

It’s a harsh certainty that a Shillington residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Shillington property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be due. Most flat owners in Shillington will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.

An extended lease has roughly the same value as a freehold

Leasehold properties in Shillington with in excess of one hundred years left 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 premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

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

Almost all banks and building societies will not grant a mortgage on a lease with less than 70 years unexpired - although this varies from lender to lender. A purchaser will likely encounter difficulties in obtaining a mortgage and this will result in your Shillington property becoming difficult to dispose of or to obtain finance on.

Why use us for your lease extension in Shillington?

Irrespective of whether you are a tenant or a freeholder in Shillington,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shillington valuers.

Shillington Lease Extension Case Studies:

Ellie, Shillington, Bedfordshire,

After lengthy correspondence with the landlord of her purpose-built flat in Shillington, Ellie initiated the lease extension process as the 80 year mark was fast approaching. The legal work was concluded in July 2009. The landlord’s costs were restricted to approximately five hundred GBP.

Shillington case:

In 2009 we were e-mailed by Dr Caleb François who, having acquired a studio apartment in Shillington in June 2001. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Similar homes in Shillington with an extended lease were worth £290,000. The average ground rent payable was £45 billed monthly. The lease came to a finish in 2099. Considering the 73 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.

Shillington case:

Mr and Mrs. D Bennett owned a basement flat in Shillington in April 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Shillington with 100 year plus lease were worth £240,600. The mid-range amount of ground rent was £65 billed every twelve months. The lease lapsed on 23 July 2088. Having 62 years outstanding we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including fees.