Top reasons for Isle of Sheppey lease extension

Top reasons for lease extension now:

Increase your lease and increase your Isle of Sheppey property value

The value of Isle of Sheppey leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than eighty years

Isle of Sheppey property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Isle of Sheppey with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies will not lend with a short lease

The trend since over the last decade has been for banks to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks would grant a mortgage on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

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

The conveyancers that we work with procure Isle of Sheppey 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 conveyancer we work with provide it.

Isle of Sheppey Lease Extension Case Studies:

Katherine, Isle of Sheppey, Kent,

In the wake of 9 months of lengthy negotiations with the freeholder of her first floor flat in Isle of Sheppey, Katherine initiated the lease extension process as the 80 year deadline was swiftly advancing. The legal work was finalised in March 2012. The freeholder’s costs were kept to an absolute minimum.

Isle of Sheppey case:

Last Spring we were approach by Mr and Mrs. U Lewis , who acquired a purpose-built apartment in Isle of Sheppey in September 2003. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative residencies in Isle of Sheppey with an extended lease were valued around £206,200. The average ground rent payable was £60 collected every twelve months. The lease finished in 2082. Taking into account 56 years outstanding we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of costs.

Isle of Sheppey case:

Last month we were called by Mr and Mrs. F Stewart , who completed a newly refurbished apartment in Isle of Sheppey in October 2000. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparative flats in Isle of Sheppey with a long lease were worth £300,000. The average amount of ground rent was £50 collected yearly. The lease terminated in 2102. Considering the 76 years unexpired we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.