Shildon leases on residential properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Shildon will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Leeds Building Society | |
| Santander | |
| TSB | |
| Virgin |
Lease extensions in Shildon can be a difficult process. We recommend you get professional help from a conveyancer and valuer 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 a wealth of experience procuring Shildon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Connor was the the leasehold proprietor of a studio apartment in Shildon being sold with a lease of a little over fifty eight years left. Connor informally contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Connor to exercise his statutory right. Connor obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Last Spring we were approach by Mr and Mrs. D Watson , who took over the lease of a purpose-built apartment in Shildon in February 2003. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Similar properties in Shildon with an extended lease were valued about £205,000. The average ground rent payable was £50 billed annually. The lease elapsed on 22 January 2105. Considering the 79 years outstanding we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Mr Jake Walker bought a recently refurbished flat in Shildon in November 2004. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical homes in Shildon with 100 year plus lease were valued around £275,000. The average ground rent payable was £65 collected annually. The lease terminated in 2094. Having 68 years as a residual term we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.