The market value of a leasehold property in Great Shelford depends on how long the lease has remaining. If it is near to or fewer than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be finalised in advance of the eighty year mark. Current legislation entitles Great Shelford qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using 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 wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Sebastian, started to get near to the 80-year mark with the lease on his purpose- built flat in Great Shelford. Having bought his home 19 years previously, the unexpired term was of little interest. by good luck, it dawned on him that he would soon be paying way over the odds for Extending the lease. Sebastian extended the lease just under the wire last April. Sebastian and the freeholder via the management company eventually agreed on an amount of £5,500 . If he had missed the deadline, the sum would have increased by a minimum £975.
In 2013 we were called by Mrs Rachel Morel who, having owned a basement flat in Great Shelford in August 2012. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Great Shelford with a long lease were valued about £166,400. The mid-range amount of ground rent was £60 billed monthly. The lease concluded in 2080. Having 54 years left we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of professional charges.
In 2012 we were contacted by Mr and Mrs. F Lewis who, having was assigned a lease of a one bedroom apartment in Great Shelford in November 2000. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative homes in Great Shelford with a long lease were worth £227,800. The average amount of ground rent was £45 collected monthly. The lease concluded on 28 January 2091. Taking into account 65 years unexpired we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.