Why you should start your Shildon lease extension

Main reasons to start your Shildon lease extension today:

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

With a residential leasehold property in Shildon, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than 80 years remaining. Anyone in Shildon with a lease nearing 81 years remaining should seriously think of extending it sooner than later. Once the lease term has below eighty years remaining, under the current statute the landlord can calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is due.

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

It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Mortgage lenders will not issue a mortgage with a short lease

Banks and Building Societies have set criteria when loaning funds charged on leasehold property. Some will simply refrain from lending at all once the residual lease term slips below a specified unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired term of less than seventy years suitable security. In addition to this being important when selling, it is also relevant where you are seeking to refinance your Shildon property.

What makes us experts in Shildon lease extensions?

Using our service gives you better control over the value of your Shildon leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Shildon Lease Extension Case Studies:

Eli, Shildon, County Durham,

Eli was the the leasehold owner of a studio flat in Shildon being marketed with a lease of a few days over sixty years outstanding. Eli informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Eli to exercise his statutory right. Eli obtained expert legal guidance and secured satisfactory resolution without going to tribunal and sell the property.

Shildon case:

Last Autumn we were phoned by Mr J Moore , who acquired a purpose-built flat in Shildon in June 2000. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Similar properties in Shildon with 100 year plus lease were valued about £285,000. The average ground rent payable was £45 collected monthly. The lease elapsed on 27 February 2097. Considering the 71 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.

Shildon case:

Dr Georgia Moore acquired a first floor apartment in Shildon in March 2011. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Shildon with a long lease were worth £225,800. The mid-range amount of ground rent was £60 billed annually. The lease concluded on 1 August 2086. Considering the 60 years unexpired we estimated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 not including fees.