Why you should commence your Shenley lease extension

Main reasons to commence your Shenley lease extension today:

A Shenley lease depreciates with the years remaining on the lease.

Shenley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Shenley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Shenley you really ought to check if your lease has between 70 and 90 years remaining. There are good reasons why a Shenley leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is put in place without delay

An extended lease has roughly the same value as a freehold

Leasehold premises in Shenley with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lending institutions will not loan monies on a short lease

Most high street banks are tightening their criteria and a meaningful number now require flats to have at least sixty if not seventy years remaining at the expiry of the mortgage. As many flats in Shenley were built in the fifties, sixties and seventies this means many now need to be extended if they wish to get a mortgage.

What makes us experts in Shenley lease extensions?

The conveyancers that we work with handle Shenley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Shenley Lease Extension Example Cases:

Nathan, Shenley, Hertfordshire,

Nathan was the the leasehold owner of a 2 bedroom flat in Shenley on the market with a lease of just over fifty eight years unexpired. Nathan informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Nathan to exercise his statutory right. Nathan procured expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.

Shenley case:

Dr Omar Mercier owned a first floor apartment in Shenley in June 2007. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Identical premises in Shenley with 100 year plus lease were valued around £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded on 26 June 2095. Having 69 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.