Great Shelford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Great Shelford tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Great Shelford you would be well advised to check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Great Shelford with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Great Shelford,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Great Shelford valuers.
Last Winter Kyle, came dangerously near to the eighty-year threshold with the lease on his first floor apartment in Great Shelford. Having purchased his home twenty years ago, the lease term was of no significance. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Kyle arranged for a lease extension just under the wire last June. Kyle and the landlord ultimately settled on sum of £5,000 . If the lease had dipped to less than eighty years, the amount would have gone up by at least £1,125.
Dr Y Harris moved into a first floor apartment in Great Shelford in May 2001. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical properties in Great Shelford with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease terminated in 2103. Having 77 years remaining we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including fees.
Mr David Ramírez purchased a ground floor flat in Great Shelford in January 2007. We are asked if we could approximate the premium would be for a 90 year lease extension. Identical premises in Great Shelford with an extended lease were worth £183,600. The average amount of ground rent was £65 collected every twelve months. The lease concluded in 2083. Given that there were 57 years outstanding we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus costs.