Main reasons to start your Shepshed lease extension

Top reasons for lease extension now:

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

The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Shepshed may extend the lease for an additional ninety years under Leasehold Reform legislation. Please think carefully before delaying your Shepshed lease extension. Postponing that expense today simply escalates the amount you will eventually have to pay to extend the lease.

An extended lease is almost the same value as a freehold

Leasehold properties in Shepshed with more than 100 years unexpired on the lease are sometimes regarded as a ‘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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may decide not to finance a property with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past lenders were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

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

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

Shepshed Lease Extension Case Summaries:

Phoebe, Shepshed, Leicestershire,

After unsuccessful discussions with the freeholder of her first floor flat in Shepshed, Phoebe initiated the lease extension process just as her lease was approaching the crucial 80-year deadline. The legal work was concluded in October 2015. The freeholder’s costs were kept to an absolute minimum.

Shepshed case:

Mr and Mrs. A Davis owned a ground floor flat in Shepshed in May 2003. The question was if we could approximate the price could be to prolong the lease by 90 years. Similar properties in Shepshed with a long lease were valued about £290,000. The average ground rent payable was £45 billed monthly. The lease termination date was on 16 August 2098. Taking into account 72 years left we estimated the premium to the landlord for the lease extension to be between £11,400 and £13,200 plus costs.

Shepshed case:

In 2009 we were called by Mr and Mrs. L Morgan who, having was assigned a lease of a ground floor apartment in Shepshed in July 2002. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable residencies in Shepshed with an extended lease were worth £233,200. The mid-range ground rent payable was £60 billed yearly. The lease ended on 22 August 2087. Taking into account 61 years left we estimated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 not including costs.