Stop! Your Lease Extension in Shaftesbury Could Be FREE

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Many leaseholders in Shaftesbury are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Shaftesbury has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Why you should start your Shaftesbury lease extension

Why you should start your Shaftesbury lease extension today:

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

The market value of Shaftesbury leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is less than eighty years

An extended lease is almost the same value as a freehold

Leasehold premises in Shaftesbury with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 maintenance charges justify it.

Lending institutions may not finance a property on a short lease

Almost all mortgage lenders insist on a lengthy amount of time remaining on any leasehold residence before they will consider lending on it. Regardless of whether you require a mortgage, you should be aware that it is likely that someone intending to acquire your property in the future might well do, so where they are unable to obtain a mortgage, then the market price of your property will likely be adversely impacted. In the last decade many mortgage lenders have increased the required minimum lease length that they are prepared to accept

Lender Requirement
Accord Mortgages 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Santander

If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest.

You must report the unexpired lease term to us and await our instructions if: 
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided.
 


We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.

Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
Yorkshire Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.

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

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

Shaftesbury Lease Extension Example Cases:

Shannon, Shaftesbury, Dorset,

Off the back of protracted discussions with the landlord of her purpose-built flat in Shaftesbury, Shannon commenced the lease extension process just as her lease was nearing the critical eighty-year threshold. The legal work completed in March 2015. The landlord’s costs were kept to an absolute minimum.

Shaftesbury case:

Last Summer we were called by Dr Harry Adams , who purchased a studio flat in Shaftesbury in April 2006. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Similar properties in Shaftesbury with an extended lease were worth £184,000. The mid-range ground rent payable was £55 billed yearly. The lease ended on 2 July 2079. Having 53 years left we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of expenses.

Shaftesbury case:

In 2013 we were phoned by Mr and Mrs. B Davies who, having took over the lease of a newly refurbished flat in Shaftesbury in May 2001. The question was if we could approximate the premium would be for a 90 year extension to my lease. Similar flats in Shaftesbury with a long lease were valued about £290,000. The average amount of ground rent was £45 invoiced annually. The lease lapsed on 20 October 2099. Considering the 73 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.