Why you should commence your Sherborne lease extension

Why you should start your Sherborne lease extension today:

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

Sherborne leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Sherborne residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Sherborne you should investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Sherborne flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.

Banks and Building Societies may not grant a mortgage on a short lease

Most mortgage lenders require a lengthy amount of time left on a leasehold property before they will contemplate lending on it. Regardless of whether you require a mortgage, you should bear in mind that it is likely that someone intending to acquire your property in the future might well do, so where they are not able to obtain a mortgage, then the value of the property will likely be adversely impacted. Since 2008 the majority of mortgage lenders have increased the required minimum lease length that they are willing to lend on

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

Irrespective of whether you are a tenant or a landlord in Sherborne,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sherborne valuers.

Sherborne Lease Extension Case Studies:

Jake, Sherborne, Dorset

In 2014 Jake, started to get close to the 80-year mark with the lease on his garden flat in Sherborne. In buying his flat 18 years previously, the unexpired term was of no bearing. As luck would have it, he recognised he would imminently be paying an escalated premium for a lease extension. Jake arranged for a lease extension just ahead of time in July. Jake and the landlord ultimately agreed on sum of £6,000 . If he had missed the deadline, the premium would have escalated by a minimum £875.

Sherborne case:

Mr and Mrs. G Bell acquired a one bedroom flat in Sherborne in June 2006. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Identical properties in Sherborne with an extended lease were valued about £198,800. The average amount of ground rent was £55 billed quarterly. The lease lapsed on 20 July 2081. Having 55 years left we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus professional charges.

Sherborne case:

In 2014 we were called by Dr O Lewis who, having owned a basement apartment in Sherborne in May 2011. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative premises in Sherborne with an extended lease were in the region of £295,000. The average amount of ground rent was £50 invoiced quarterly. The lease concluded in 2101. Given that there were 75 years unexpired we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.