Shepshed leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease falls lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Shepshed will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Shepshed with in excess of one hundred years unexpired on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Lease extensions in Shepshed can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Shepshed lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Max was the the leasehold proprietor of a high value apartment in Shepshed being sold with a lease of a little over 61 years remaining. Max on an informal basis spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Max to invoke his statutory right. Max procured expert advice and secured an acceptable deal informally and sell the flat.
In 2014 we were e-mailed by Dr K Rivera who, having moved into a one bedroom flat in Shepshed in September 2002. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparative properties in Shepshed with 100 year plus lease were in the region of £189,000. The average amount of ground rent was £55 collected every twelve months. The lease terminated on 3 May 2079. Having 53 years remaining we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.
Last Winter we were phoned by Mr and Mrs. E Cook , who completed a first floor flat in Shepshed in May 2000. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar flats in Shepshed with a long lease were in the region of £290,000. The average amount of ground rent was £45 billed quarterly. The lease terminated in 2099. Considering the 73 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.