Why you should start your Shefford lease extension

Why you should start your Shefford lease extension today:

Increase your lease and increase your Shefford property value

It’s a harsh truth that a Shefford residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Shefford property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Shefford will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.

Shefford property with a lease extension is almost the same value as a freehold

It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.

Lenders may decide not to lend with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet banks and building societies start to get nervous at around 75 years. This may cause difficulties when you need to dispose of or refinance your flat as it will be practically unmortgageable. Even though you might not have an imminent plan to sell but when you do your buyer will have to wait 2 years before they can initiate the legal procedures for a lease extension.

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

Retaining our service gives you enhanced control over the value of your Shefford leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Shefford Lease Extension Case Summaries:

Yasmin, Shefford, Bedfordshire,

Following lengthy discussions with the freeholder of her purpose-built apartment in Shefford, Yasmin initiated the lease extension process just as her lease was approaching the all-important eighty-year deadline. The legal work was finalised in April 2009. The landlord’s costs were kept to an absolute minimum.

Shefford case:

Mr and Mrs. S André took over the lease of a studio apartment in Shefford in May 1998. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Shefford with an extended lease were worth £206,200. The average ground rent payable was £60 invoiced annually. The lease expired on 10 February 2082. Taking into account 56 years outstanding we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including professional charges.

Shefford case:

In 2010 we were e-mailed by Mr Sam Hernández who, having was assigned a lease of a garden flat in Shefford in January 1997. The question was if we could estimate the price would be for a 90 year extension to my lease. Comparable properties in Shefford with a long lease were worth £300,000. The average amount of ground rent was £50 invoiced per annum. The lease came to a finish on 14 April 2102. Given that there were 76 years left we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.