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Top reasons for Shildon lease extension

Top reasons for lease extension now:

Increase your lease and increase your Shildon property value

The re-sale value of a leasehold property in Shildon is impacted by how long the lease has remaining. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be finalised well before the eighty year cut off point. Statute entitles Shildon qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold premises in Shildon with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lenders will not grant a mortgage on a short lease

Mortgage companies are really clamping down as regards to homes in Shildon with short leases. For example you might discover that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you needed to sell, your only options would be to find a cash buyer, or try your luck at auction thus reducing the amount of potential purchasers.

Lender Requirement
Coventry Building Society A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Leeds Building Society 85 years remaing from the start of the mortgage.
National Westminster Bank Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

Why use us for your lease extension in Shildon?

The conveyancing solicitors that we work with procure Shildon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Shildon Lease Extension Case Studies:

Ryan, Shildon, County Durham,

Ryan was the the leasehold owner of a 2 bedroom apartment in Shildon on the market with a lease of a few days over fifty eight years remaining. Ryan on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert advice and was able to make a more informed decision and handle with the matter and sell the property.

Shildon case:

In 2009 we were phoned by Mr and Mrs. O Lambert who, having acquired a one bedroom flat in Shildon in October 2000. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Identical homes in Shildon with an extended lease were valued about £248,000. The mid-range amount of ground rent was £65 collected every twelve months. The lease lapsed in 2086. Considering the 63 years left we approximated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 plus legals.

Shildon case:

In 2012 we were contacted by Dr Hannah Hill who, having purchased a ground floor flat in Shildon in May 1999. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Identical homes in Shildon with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 billed quarterly. The lease ended on 4 January 2075. Given that there were 52 years remaining we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus expenses.