Top reasons for Shirenewton lease extension

Main reasons to start your Shirenewton lease extension today:

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

Shirenewton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Shirenewton tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Shirenewton you should investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold properties in Shirenewton with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may decide not to finance a property on a short lease

Lenders are making their criteria more stringent and many now require flats to have at least sixty if not seventy years remaining at the expiry of the mortgage. Given that many flats in Shirenewton were built in the fifties, sixties and seventies as a result many now need to be extended if they wish to get a mortgage.

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

Lease extensions in Shirenewton can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in this area.

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 in-depth market knowledge dealing with Shirenewton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Shirenewton Lease Extension Case Studies:

Daisy, Shirenewton, Monmouthshire,

Subsequent to lengthy discussions with the freeholder of her leasehold flat in Shirenewton, Daisy started the lease extension process just as her lease was approaching the critical 80-year deadline. The transaction was finalised in April 2013. The landlord’s costs were kept to an absolute minimum.

Shirenewton case:

Last Summer we were approach by Mr R Lambert , who bought a basement flat in Shirenewton in June 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Shirenewton with 100 year plus lease were valued around £243,000. The mid-range amount of ground rent was £65 collected monthly. The lease concluded on 14 April 2089. Considering the 63 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of professional charges.

Shirenewton case:

In 2013 we were contacted by Dr A Ali who, having completed a one bedroom apartment in Shirenewton in February 2003. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical flats in Shirenewton with a long lease were valued about £181,600. The mid-range ground rent payable was £55 invoiced annually. The lease elapsed on 16 April 2078. Given that there were 52 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of legals.