Top reasons for Sherborne lease extension

Why you should start your Sherborne lease extension today:

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

Sherborne residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.

Sherborne property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Sherborne with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not loan monies on a short lease

The propensity since the credit crunch has been for banks to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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

Lease extensions in Sherborne can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.

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 Sherborne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Sherborne Lease Extension Case Studies:

Joshua, Sherborne, Dorset

Two years ago Joshua, came dangerously close to the 80-year mark with the lease on his two bedroom flat in Sherborne. Having bought his flat 19 years previously, the length of the lease was of little importance. Fortunately, it dawned on him that he would imminently be paying way over the odds for a lease extension. Joshua extended the lease just in the nick of time last September. Joshua and the landlord subsequently agreed on a premium of £6,000 . If he failed to meet the deadline, the figure would have increased by a minimum £950.

Sherborne case:

Mr and Mrs. V Bonnet was assigned a lease of a newly refurbished apartment in Sherborne in March 2001. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Sherborne with a long lease were valued around £181,600. The mid-range amount of ground rent was £55 billed quarterly. The lease concluded on 11 September 2077. Given that there were 52 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including expenses.

Sherborne case:

In 2009 we were contacted by Mr and Mrs. G Parker who, having acquired a basement apartment in Sherborne in March 2009. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical homes in Sherborne with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 collected monthly. The lease termination date was in 2097. Having 72 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.