Why you should commence your Sheldon lease extension

Top reasons for lease extension now:

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

Unfortunately that a Sheldon residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Sheldon property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term falls below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Sheldon will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.

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

Leasehold premises in Sheldon with in excess of 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 freehold unless savings on ground rent and estate charges warrant it.

Lending institutions may decide not to lend with a short lease

Banks and building societies are making their criteria more stringent and many now want flats to have at least sixty if not seventy years remaining at the expiry of the mortgage. As plenty of flats in Sheldon were created in the fifties, sixties and seventies this means many now require lease extensions if they if they are to be mortgageable.

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

Using our service gives you better control over the value of your Sheldon leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Sheldon Lease Extension Example Cases:

Molly, Sheldon, Birmingham,

Off the back of lengthy correspondence with the freeholder of her garden flat in Sheldon, Molly commenced the lease extension process just as her lease was approaching the crucial 80-year threshold. The lease extension was finalised in May 2008. The landlord’s charges were restricted to approximately 600 GBP.

Sheldon case:

Mrs Gemma García purchased a garden apartment in Sheldon in August 2009. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Identical properties in Sheldon with an extended lease were valued about £203,200. The mid-range amount of ground rent was £65 billed monthly. The lease ended in 2087. Considering the 61 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of fees.

Sheldon case:

Dr D Johnson purchased a first floor flat in Sheldon in June 2000. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Identical properties in Sheldon with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed quarterly. The lease came to a finish in 2098. Having 72 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.