Unfortunately that a Shifnal residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Shifnal property prices.Where your lease has approximately 90 years left, you need to start thinking about 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 dips below 80 years - otherwise a higher amount will be due. The majority of flat owners in Shifnal will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Santander | |
| Royal Bank of Scotland |
Lease extensions in Shifnal can be a difficult process. We recommend you obtain guidance 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 Shifnal lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of protracted discussions with the landlord of her one bedroom apartment in Shifnal, Sarah commenced the lease extension process just as her lease was approaching the critical 80-year mark. The lease extension completed in September 2008. The landlord’s fees were restricted to under 600 GBP.
In 2011 we were e-mailed by Ms E Rodríguez who, having bought a purpose-built apartment in Shifnal in May 2011. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable residencies in Shifnal with 100 year plus lease were in the region of £183,600. The mid-range ground rent payable was £65 invoiced yearly. The lease lapsed in 2083. Taking into account 57 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of costs.
Dr Luca Michel bought a first floor flat in Shifnal in July 1995. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative homes in Shifnal with an extended lease were in the region of £245,000. The mid-range ground rent payable was £50 collected annually. The lease expiry date was on 6 November 2094. Given that there were 68 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.