Top reasons for Shinfield lease extension

Why you should commence your Shinfield lease extension today:

Increase your lease and increase your Shinfield property value

The market value of Shinfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the unexpired lease term is below than eighty years

Shinfield property with a lease extension is almost the same value as a freehold

Leasehold residencies in Shinfield with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.

Lenders may not grant a mortgage on a short lease

Mortgage companies do not like short residential leases. You are likely to encounter difficulties if you need to sell your flat in Shinfield if the unexpired term of your lease is below the criteria set by the majority of banks and building societies. Different lenders have different criteria but on the whole theyrequire a minimum remaining lease term of 65 years.

Get in touch with one of our Shinfield lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with handle Shinfield 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.

Shinfield Lease Extension Case Summaries:

Hugo, Shinfield, Berkshire,

Hugo owned a 2 bedroom flat in Shinfield being marketed with a lease of a little over 61 years outstanding. Hugo informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Hugo to exercise his statutory right. Hugo obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.

Shinfield case:

Last Winter we were called by Mrs H Taylor , who moved into a basement apartment in Shinfield in July 2011. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Comparative residencies in Shinfield with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease terminated in 2102. Having 76 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.

Shinfield case:

In 2014 we were contacted by Dr N Cooper who, having took over the lease of a one bedroom flat in Shinfield in November 1997. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparable flats in Shinfield with 100 year plus lease were valued about £176,200. The mid-range amount of ground rent was £65 collected monthly. The lease terminated in 2082. Given that there were 56 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of expenses.