Main reasons to commence your Isle of Sheppey lease extension

Why you should start your Isle of Sheppey lease extension today:

A Isle of Sheppey leasehold property depreciates with the years remaining on the lease.

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 remaining term is less than 80 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 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.

Lending institutions will not issue a mortgage on a short lease

Lenders are really clamping down as regards to properties in Isle of Sheppey with short leases. For example you might discover that their lending requirements are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you wanted to sell, your only options would be to find a cash purchaser, or try your luck at auction thus restricting the number of potential buyers.

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

Engaging our service will provide you better control over the value of your Isle of Sheppey leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Isle of Sheppey Lease Extension Case Studies:

Natalie, Isle of Sheppey, Kent,

After protracted discussions with the landlord of her two bedroom apartment in Isle of Sheppey, Natalie started the lease extension process as the 80 year mark was swiftly nearing. The legal work was finalised in June 2013. The freeholder’s fees were kept to an absolute minimum.

Isle of Sheppey case:

In 2013 we were called by Mr I Howard who, having was assigned a lease of a ground floor flat in Isle of Sheppey in March 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Identical homes in Isle of Sheppey with a long lease were worth £285,000. The mid-range amount of ground rent was £45 collected per annum. The lease end date was on 23 April 2097. Considering the 71 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.

Isle of Sheppey case:

Ms O Moreau acquired a newly refurbished apartment in Isle of Sheppey in November 1997. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative flats in Isle of Sheppey with a long lease were in the region of £225,800. The average ground rent payable was £60 billed annually. The lease lapsed in 2086. Considering the 60 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £24,700 and £28,600 plus fees.