Top reasons for Shrewsbury lease extension

Why you should commence your Shrewsbury lease extension today:

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

Chances are that where you own a flat in Shrewsbury you actually own a long leasehold interest over your property

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

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.

Lending institutions may decide not to finance a property with a short lease

The trend since the credit crunch has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has meant the unexpired lease term required by banks has increased. Historically banks were content with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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

Engaging our service will provide you better control over the value of your Shrewsbury leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Shrewsbury Lease Extension Case Summaries:

Nathan, Shrewsbury, Shropshire,

Nathan was the the leasehold proprietor of a 2 bedroom flat in Shrewsbury on the market with a lease of fraction over 61 years remaining. Nathan on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.

Shrewsbury case:

Mr and Mrs. J Nguyen acquired a studio flat in Shrewsbury in June 1996. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Comparable properties in Shrewsbury with an extended lease were worth £205,000. The average ground rent payable was £50 billed annually. The lease ran out on 20 March 2104. Having 78 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.

Shrewsbury case:

Last Winter we were called by Dr Archie Mitchell , who owned a basement apartment in Shrewsbury in May 2009. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative residencies in Shrewsbury with 100 year plus lease were in the region of £267,600. The average ground rent payable was £65 invoiced every twelve months. The lease lapsed on 19 January 2093. Having 67 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of expenses.