Chances are that where you own a flat in Shenstone you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| TSB | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancers that we work with undertake Shenstone 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 conveyancer we work with provide it.
Theo was the the leasehold proprietor of a studio flat in Shenstone being marketed with a lease of a few days over 59 years remaining. Theo informally approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be due on a lease extension were Theo to invoke his statutory right. Theo obtained expert advice and secured satisfactory deal without resorting to tribunal and sell the property.
In 2014 we were e-mailed by Dr T Collins who, having was assigned a lease of a basement flat in Shenstone in May 2006. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable properties in Shenstone with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 collected per annum. The lease terminated on 20 April 2104. Taking into account 78 years unexpired we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.
Mr Eliot Gómez completed a first floor flat in Shenstone in November 1997. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Comparative residencies in Shenstone with an extended lease were valued about £267,600. The average amount of ground rent was £65 invoiced per annum. The lease lapsed on 28 February 2093. Considering the 67 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 not including legals.