It’s a harsh 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 not fully appreciated in the early years due to the depreciation being disguised by increases in the Great Shelford property market.Once your lease nears 85ish years, you should start considering a lease extension. If lease term slips under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to 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 flat owners in Great Shelford will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Great Shelford with in excess of 100 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Great Shelford,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Great Shelford valuers.
Last Christmas Cameron, came perilously near to the 80-year mark with the lease on his first floor flat in Great Shelford. Having purchased his home two decades ago, the length of the lease was of minimal bearing. by good luck, he became aware that he would imminently be paying an inflated amount for Extending the lease. Cameron extended the lease just in the nick of time last January. Cameron and the landlord subsequently settled on an amount of £6,000 . If the lease had slid to less than 80 years, the figure would have gone up by at least £900.
In 2011 we were phoned by Mr H Lambert who, having owned a studio apartment in Great Shelford in November 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar properties in Great Shelford with a long lease were worth £255,000. The average ground rent payable was £50 invoiced monthly. The lease finished in 2096. Taking into account 70 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Mr and Mrs. K Adams bought a basement apartment in Great Shelford in June 2003. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar premises in Great Shelford with 100 year plus lease were worth £246,800. The mid-range ground rent payable was £60 billed yearly. The lease termination date was in 2076. Having 50 years left we estimated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of costs.