Shirebrook leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the existing lease dips below 80 years - otherwise a higher premium will be payable. Leasehold owners in Shirebrook will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Shirebrook with in excess of 100 years left 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 premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| The Mortgage Works |
The conveyancers that we work with procure Shirebrook 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.
Mason owned a 2 bedroom flat in Shirebrook on the market with a lease of just over 61 years remaining. Mason informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Mason to invoke his statutory right. Mason procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. E Richardson completed a basement apartment in Shirebrook in March 2006. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical flats in Shirebrook with a long lease were valued about £235,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease terminated on 14 November 2088. Having 62 years outstanding we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus costs.
In 2010 we were contacted by Mrs Kayleigh Rose who, having moved into a purpose-built apartment in Shirebrook in April 1999. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical premises in Shirebrook with an extended lease were valued around £174,200. The mid-range ground rent payable was £55 billed per annum. The lease termination date was in 2077. Given that there were 51 years unexpired we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus fees.