Top reasons for Shipley lease extension

Why you should start your Shipley lease extension today:

A Shipley lease depreciates with the years remaining on the lease.

The value of Shipley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is below than eighty years

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

It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not grant a mortgage with a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by lenders has increased. Historically lenders were content with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

The lawyers that we work with handle Shipley 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 lawyer we work with provide it.

Shipley Lease Extension Example Cases:

Sian, Shipley, West Yorkshire,

Trailing lengthy negotiations with the freeholder of her garden flat in Shipley, Sian started the lease extension process as the eighty year mark was rapidly nearing. The transaction was finalised in February 2009. The freeholder’s fees were negotiated to slightly above 450 GBP.

Shipley case:

Mr and Mrs. J Roberts was assigned a lease of a basement flat in Shipley in September 2001. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Shipley with a long lease were worth £275,000. The mid-range ground rent payable was £45 invoiced per annum. The lease expiry date was on 10 November 2095. Considering the 69 years as a residual term we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.

Shipley case:

Last year we were e-mailed by Dr S Wright , who was assigned a lease of a one bedroom flat in Shipley in October 2004. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative premises in Shipley with a long lease were worth £216,000. The average ground rent payable was £60 collected annually. The lease came to a finish on 15 January 2084. Given that there were 58 years remaining we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.