It’s an underpublicised truth that a Great Shelford residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Great Shelford property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Great Shelford will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Skipton Building Society | |
| TSB | |
| Royal Bank of Scotland |
Engaging our service will provide you increased control over the value of your Great Shelford leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Aiden was the the leasehold proprietor of a conversion apartment in Great Shelford being marketed with a lease of a few days over 61 years unexpired. Aiden on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be due on a lease extension were Aiden to invoke his statutory right. Aiden obtained expert advice and secured an acceptable resolution without going to tribunal and sell the property.
Last July we were e-mailed by Mrs Jodie Cook , who bought a garden apartment in Great Shelford in August 1999. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable properties in Great Shelford with an extended lease were worth £210,600. The mid-range amount of ground rent was £45 collected annually. The lease ran out on 21 July 2088. Given that there were 62 years unexpired we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus fees.
Mr and Mrs. W Petit acquired a studio apartment in Great Shelford in October 2010. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical flats in Great Shelford with an extended lease were valued about £265,000. The mid-range ground rent payable was £50 collected quarterly. The lease expiry date was in 2099. Given that there were 73 years remaining we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.