Main reasons to commence your Shortlands lease extension

Main reasons to commence your Shortlands lease extension today:

Increase your lease and increase your Shortlands property value

Unfortunately that a Shortlands residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Shortlands property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term slips below 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Shortlands will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.

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

Leasehold properties in Shortlands with over one hundred years remaining 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lending institutions may not issue a mortgage with a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to get concerned at around 75 years. This may cause difficulties once you need to sell or remortgage your flat as it will be effectively unmortgageable. You might have no imminent intention to sell but when you do your buyer will have to hold off for a couple of years before being able to commence the legal procedures for a lease extension.

What makes us experts in Shortlands lease extensions?

Lease extensions in Shortlands can be a difficult process. We recommend you secure professional help 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 Shortlands lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Shortlands Lease Extension Example Cases:

Millie, Shortlands, Kent,

After protracted correspondence with the freeholder of her ground floor flat in Shortlands, Millie initiated the lease extension process as the eighty year threshold was quickly coming. The lease extension completed in May 2007. The freeholder’s fees were negotiated to slightly above 650 GBP.

Shortlands case:

In 2009 we were contacted by Mr and Mrs. L Ward who, having bought a purpose-built apartment in Shortlands in September 2003. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparable residencies in Shortlands with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 billed per annum. The lease expired in 2104. Considering the 78 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.