Unfortunately that a Sherston residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Sherston property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be due. The majority of flat owners in Sherston will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Sherston with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Virgin | |
| Yorkshire Building Society |
Retaining our service gives you increased control over the value of your Sherston leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Toby, came critically close to the eighty-year threshold with the lease on his leasehold apartment in Sherston. Having purchased his flat two decades ago, the length of the lease was of no concern. Thankfully, he noticed he needed to take action soon on a lease extension. Toby was able to extend his lease just under the wire in June. Toby and the landlord subsequently settled on a premium of £6,000 . If the lease had descended lower than eighty years, the price would have escalated by at least £875.
In 2011 we were e-mailed by Mr and Mrs. U Hernández who, having moved into a one bedroom flat in Sherston in August 2010. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparative properties in Sherston with an extended lease were worth £285,000. The average ground rent payable was £55 invoiced yearly. The lease finished in 2106. Given that there were 80 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
Last Christmas we were phoned by Mr H Ward , who acquired a ground floor flat in Sherston in August 2005. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Sherston with an extended lease were valued about £198,400. The average amount of ground rent was £65 billed monthly. The lease concluded on 3 October 2085. Given that there were 59 years outstanding we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.