Main reasons to start your Shelfield lease extension

Main reasons to start your Shelfield lease extension today:

Increase your lease and increase your Shelfield property value

Chances are that if you own a flat in Shelfield you actually own a long leasehold interest over your property

An extended lease is almost the same value as a freehold

Leasehold residencies in Shelfield with over one hundred 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 reversionary interest unless savings on ground rent and service charges warrant it.

Lending institutions may not grant a mortgage with a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to become nervous at around 75 years. This will be problematic once you wish to market or refinance your flat as it will be practically unmortgageable. You may have no immediate intention to sell but when you do your buyer will need to hold off for 2 years before they can commence the legal procedures for an extension to the lease.

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

Regardless of whether you are a tenant or a landlord in Shelfield,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shelfield valuers.

Shelfield Lease Extension Example Cases:

Stanley, Shelfield, Birmingham

Last October Stanley, started to get close to the 80-year threshold with the lease on his leasehold apartment in Shelfield. In buying his property two decades ago, the length of the lease was of little relevance. Fortunately, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Stanley extended the lease just under the wire last May. Stanley and the freeholder subsequently settled on a premium of £5,000 . If the lease had descended to less than eighty years, the figure would have become more exhorbitant by a minimum £1,100.

Shelfield case:

In 2012 we were phoned by Dr V Scott who, having took over the lease of a recently refurbished apartment in Shelfield in May 2001. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparative properties in Shelfield with 100 year plus lease were worth £295,000. The average ground rent payable was £45 invoiced monthly. The lease expiry date was on 7 February 2100. Taking into account 74 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.

Shelfield case:

Last Winter we were called by Ms I Davis , who moved into a newly refurbished apartment in Shelfield in August 2006. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Shelfield with a long lease were in the region of £243,000. The average amount of ground rent was £65 billed annually. The lease finished in 2089. Considering the 63 years left we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 plus fees.