Main reasons to commence your Shenfield lease extension

Main reasons to start your Shenfield lease extension today:

Increase your lease and increase your Shenfield property value

The market value of Shenfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is below than 80 years

An extended lease has roughly the same value as a freehold

Leasehold residencies in Shenfield with more than one hundred years left on the lease are sometimes referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may decide not to issue a mortgage on a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to become concerned at around 75 years. This may cause difficulties as and when you wish to sell or refinance your flat as it will be effectively unmortgageable. You might not have an immediate plan to sell but when you do your buyer must hold off for two years before they can initiate the legal procedures for an extension to the lease.

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

Engaging our service gives you increased control over the value of your Shenfield leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Shenfield Lease Extension Case Studies:

Michael, Shenfield, Essex

Two years ago Michael, came very close to the 80-year threshold with the lease on his ground floor flat in Shenfield. In buying his property twenty years previously, the length of the lease was of minimal significance. As luck would have it, he noticed he would imminently be paying way over the odds for a lease extension. Michael was able to extend his lease just under the wire in March. Michael and the freeholder eventually settled on the final figure of £5,000 . If the lease had gone lower than 80 years, the sum would have gone up by at least £1,150.

Shenfield case:

In 2011 we were approached by Mr and Mrs. I Adams who, having bought a one bedroom apartment in Shenfield in July 1996. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Shenfield with an extended lease were worth £242,600. The mid-range amount of ground rent was £45 billed monthly. The lease lapsed on 25 August 2093. Having 67 years remaining we calculated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of costs.

Shenfield case:

Last Christmas we were e-mailed by Mr and Mrs. S Brooks , who moved into a one bedroom apartment in Shenfield in April 2005. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Identical properties in Shenfield with a long lease were worth £280,000. The mid-range amount of ground rent was £55 billed annually. The lease elapsed on 13 July 2104. Given that there were 78 years left we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including fees.