Why you should start your Shard End lease extension

Top reasons for lease extension now:

A Shard End leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Shard End is impacted by how long the lease has remaining. If it is close to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be finalised prior to the 80 year cut off point. Statute entitles Shard End qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.

Lenders will not finance a property with a short lease

Almost all mortgage lenders insist on a lengthy amount of time left on any leasehold property before they will contemplate it as adequate security. Even if you don't need a mortgage, you should be conscious that it is likely that someone wishing to purchase your property in the future might well do, so where they can't secure a mortgage, then the value of your property could suffer. In the last decade most banks and building societies have increased the required minimum lease length that they are willing to grant a mortgage on

What makes us experts in Shard End lease extensions?

The conveyancing solicitors that we work with procure Shard End 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.

Shard End Lease Extension Case Summaries:

Chelsea, Shard End, Birmingham,

After lengthy correspondence with the landlord of her leasehold apartment in Shard End, Chelsea commenced the lease extension process as the eighty year mark was rapidly advancing. The transaction was finalised in January 2009. The freeholder’s costs were restricted to below 600 pounds.

Shard End case:

In 2014 we were e-mailed by Mr H Brown who, having bought a first floor flat in Shard End in November 2010. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Identical properties in Shard End with a long lease were valued around £270,000. The mid-range amount of ground rent was £55 collected monthly. The lease ended in 2100. Taking into account 74 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.

Shard End case:

Last month we were contacted by Mr and Mrs. U Jones , who owned a one bedroom apartment in Shard End in June 2009. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical flats in Shard End with a long lease were in the region of £166,400. The mid-range ground rent payable was £60 collected annually. The lease lapsed in 2080. Given that there were 54 years remaining we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including professional charges.