Main reasons to commence your Earl Shilton lease extension

Top reasons for lease extension now:

A Earl Shilton leasehold property depreciates with the years remaining on the lease.

Earl Shilton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Earl Shilton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Earl Shilton you would be well advised to check if your lease has between 70 and 90 years left. There are good reasons why a Earl Shilton leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is put in place without delay

An extended lease is almost the same value as a freehold

Leasehold premises in Earl Shilton with over 100 years outstanding on the lease are often 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 to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.

Banks and Building Societies may decide not to issue a mortgage on a short lease

Lenders are really clamping down as regards to properties in Earl Shilton with short leases. For instance you might discover that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus limiting your market.

What makes us experts in Earl Shilton lease extensions?

Irrespective of whether you are a tenant or a landlord in Earl Shilton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Earl Shilton valuers.

Earl Shilton Lease Extension Case Summaries:

Robyn, Earl Shilton, Leicestershire,

After lengthy correspondence with the freeholder of her basement flat in Earl Shilton, Robyn commenced the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The legal work was concluded in August 2006. The landlord’s charges were kept to an absolute minimum.

Earl Shilton case:

In 2012 we were called by Mr and Mrs. B Sánchez who, having completed a studio apartment in Earl Shilton in July 2006. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Comparative properties in Earl Shilton with a long lease were valued around £200,000. The average amount of ground rent was £50 billed monthly. The lease finished in 2104. Having 78 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.

Earl Shilton case:

Ms Megan Ward took over the lease of a one bedroom flat in Earl Shilton in May 2005. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparative flats in Earl Shilton with 100 year plus lease were in the region of £267,600. The mid-range amount of ground rent was £65 billed quarterly. The lease ended on 18 September 2093. Taking into account 67 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 plus costs.