Main reasons to start your Shepton Mallet lease extension

Top reasons for lease extension now:

A Shepton Mallet leasehold property depreciates with the years remaining on the lease.

Shepton Mallet leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Shepton Mallet enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Shepton Mallet you should check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Shepton Mallet leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.

Lending institutions will not grant a mortgage on a short lease

Most mortgage lenders will be unwilling to lend on a lease with less than 70 years unexpired - although this varies from lender to lender. A buyer will undoubtedly encounter difficulties to obtain a mortgage and this could result in your Shepton Mallet property being difficult to sell or to obtain finance on.

What makes us experts in Shepton Mallet lease extensions?

Irrespective of whether you are a tenant or a freeholder in Shepton Mallet,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shepton Mallet valuers.

Shepton Mallet Lease Extension Case Summaries:

Aiden, Shepton Mallet, Somerset

Half a year ago Aiden, came seriously close to the eighty-year threshold with the lease on his first floor apartment in Shepton Mallet. Having purchased his home 19 years previously, the unexpired term was of no significance. Luckily, he became aware that he would imminently be paying an escalated premium for a lease extension. Aiden extended the lease at the eleventh hour last June. Aiden and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If the lease had dropped lower than eighty years, the sum would have gone up by a minimum £1,150.

Shepton Mallet case:

Mr and Mrs. G Rivera moved into a purpose-built flat in Shepton Mallet in July 2008. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative homes in Shepton Mallet with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease ran out on 8 May 2104. Considering the 78 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.

Shepton Mallet case:

Last Winter we were called by Mr V Moore , who took over the lease of a recently refurbished apartment in Shepton Mallet in February 1996. The question was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Identical homes in Shepton Mallet with an extended lease were worth £267,600. The mid-range ground rent payable was £65 collected every twelve months. The lease finished on 9 September 2093. Taking into account 67 years left we estimated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including professional charges.