Top reasons for Shaftesbury lease extension

Top reasons for lease extension now:

Increase your lease and increase your Shaftesbury property value

Shaftesbury residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.

Shaftesbury property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Shaftesbury with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lending institutions will not loan monies on a short lease

Lending institutions have specific criteria when loaning monies secured on leasehold property. Many will simply not lend at all once the remaining lease term slips below a certain unexpired lease term. Many Lending institutions will not consider property with an unexpired below 75 years as adequate security. As well as this being important when selling, it is also relevant where you are wanting to refinance your Shaftesbury property.

What makes us experts in Shaftesbury lease extensions?

The conveyancing solicitors that we work with handle Shaftesbury 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 lawyer we work with provide it.

Shaftesbury Lease Extension Example Cases:

Edward, Shaftesbury, Dorset,

Edward was the the leasehold proprietor of a studio flat in Shaftesbury on the market with a lease of a few days over sixty years remaining. Edward informally approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Edward to exercise his statutory right. Edward procured expert advice and was able to make an informed decision and deal with the matter and sell the flat.

Shaftesbury case:

Mr and Mrs. P Lee bought a one bedroom apartment in Shaftesbury in February 2011. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Similar properties in Shaftesbury with 100 year plus lease were worth £275,000. The average ground rent payable was £65 collected per annum. The lease end date was in 2094. Taking into account 68 years outstanding we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.

Shaftesbury case:

Mr and Mrs. R Martinez purchased a one bedroom flat in Shaftesbury in May 1998. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Identical flats in Shaftesbury with an extended lease were worth £208,600. The average ground rent payable was £60 billed every twelve months. The lease concluded in 2083. Having 57 years outstanding we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus legals.