Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Sheffield. Clearly, the length of lease remaining shortens over time. This may pass by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Sheffield have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Do give careful deliberation before delaying your Sheffield lease extension. Putting off that expense now simply increases the price you will eventually incur to extend your lease
Leasehold residencies in Sheffield 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 premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Leeds Building Society | |
| Skipton Building Society | |
| Virgin |
Retaining our service gives you better control over the value of your Sheffield leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Kian was the the leasehold owner of a high value flat in Sheffield on the market with a lease of fraction over 59 years outstanding. Kian informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be due on a lease extension were Kian to exercise his statutory right. Kian obtained expert advice and secured an acceptable resolution informally and sell the property.
Mr and Mrs. Y Mason moved into a garden flat in Sheffield in June 1997. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative flats in Sheffield with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 billed annually. The lease expired in 2104. Considering the 78 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.
In 2013 we were contacted by Dr Aarav Stewart who, having completed a first floor apartment in Sheffield in February 1997. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Identical premises in Sheffield with a long lease were in the region of £267,600. The mid-range ground rent payable was £65 collected per annum. The lease expiry date was in 2093. Taking into account 67 years outstanding we estimated the premium to the landlord for the lease extension to be between £14,300 and £16,400 plus fees.