Shaftesbury leases on residential deteriorating in value. Where your lease has approximately ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the existing lease drops lower than eighty years - otherwise a higher amount will be due. Flat owners in Shaftesbury will mostly qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not qualify. There are prescribed deadlines and formalities to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Shaftesbury leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted negotiations with the landlord of her two bedroom apartment in Shaftesbury, Natalie commenced the lease extension process just as her lease was approaching the critical eighty-year threshold. The lease extension was finalised in June 2012. The freeholder’s costs were negotiated to about four hundred GBP.
Dr Natasha Brown took over the lease of a first floor flat in Shaftesbury in January 2001. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative properties in Shaftesbury with an extended lease were valued around £267,600. The mid-range ground rent payable was £65 billed every twelve months. The lease came to a finish in 2093. Taking into account 67 years outstanding we approximated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 plus legals.
Mr and Mrs. J Girard purchased a one bedroom apartment in Shaftesbury in March 2009. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable residencies in Shaftesbury with an extended lease were valued about £201,200. The average ground rent payable was £55 billed annually. The lease elapsed on 15 March 2082. Considering the 56 years outstanding we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.