Unfortunately that a Great Shelford residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Great Shelford property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be due. The majority of flat owners in Great Shelford will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables 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.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
Lender | Requirement |
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Accord Mortgages | 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. |
Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Yorkshire 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. |
The lawyers that we work with undertake Great Shelford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Two years ago Muhammad, came precariously near to the eighty-year mark with the lease on his two bedroom apartment in Great Shelford. In buying his property twenty years previously, the unexpired term was of no relevance. Thankfully, he noticed he needed to take steps soon on a lease extension. Muhammad arranged for a lease extension just in the nick of time in September. Muhammad and the freeholder via the management company eventually settled on an amount of £5,500 . If he had missed the deadline, the figure would have increased by at least £1,025.
Mr E Lambert purchased a ground floor apartment in Great Shelford in January 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparative homes in Great Shelford with 100 year plus lease were valued around £166,400. The average amount of ground rent was £60 billed yearly. The lease concluded in 2078. Given that there were 54 years unexpired we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including professional charges.
In 2011 we were called by Mr and Mrs. S Díaz who, having owned a garden flat in Great Shelford in April 2005. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparable premises in Great Shelford with an extended lease were in the region of £227,800. The average ground rent payable was £45 collected annually. The lease came to a finish in 2089. Considering the 65 years remaining we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.