Why you should start your Shrewsbury lease extension

Why you should commence your Shrewsbury lease extension today:

Increase your lease and increase your Shrewsbury property value

Shrewsbury 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 the lease gets more expensive. The majority of owners of residential leasehold property in Shrewsbury enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Shrewsbury you should investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

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

It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.

Banks and Building Societies may not loan monies with a short lease

Many banks and building societies will be unwilling to grant a mortgage on a lease with under seventy years left to run - although this varies between mortgage companies. A buyer will likely find it difficult to obtain a mortgage and this could result in your Shrewsbury property being difficult to sell or to obtain finance on.

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

Retaining our service will provide you better control over the value of your Shrewsbury leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Shrewsbury Lease Extension Case Studies:

Theo, Shrewsbury, Shropshire

Last year Theo, started to get near to the eighty-year mark with the lease on his purpose- built flat in Shrewsbury. Having purchased his property 19 years previously, the length of the lease was of little importance. by good luck, he became aware that he would imminently be paying an inflated amount for a lease extension. Theo was able to extend his lease just under the wire in September. Theo and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If he had missed the deadline, the premium would have escalated by a minimum £1,050.

Shrewsbury case:

In 2010 we were e-mailed by Ms H Bernard who, having moved into a recently refurbished flat in Shrewsbury in November 2004. The question was if we could estimate the price could be to extend the lease by ninety years. Comparable properties in Shrewsbury with an extended lease were valued around £223,400. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease end date was in 2085. Taking into account 59 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 plus costs.

Shrewsbury case:

Mr and Mrs. S Scott owned a basement flat in Shrewsbury in November 2007. We are asked if we could estimate the price could be to extend the lease by an additional years. Comparable homes in Shrewsbury with a long lease were valued around £205,000. The average amount of ground rent was £50 invoiced per annum. The lease elapsed in 2105. Considering the 79 years outstanding we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.