There is no doubt about it a leasehold flat or house in Shaftesbury is a wasting asset as a result of the shortening lease. Where the residual term has, over 125 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending without delay. Many flat owners in Shaftesbury will meet the qualifying criteria; however a conveyancing solicitor should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Shaftesbury with over 100 years left 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Shaftesbury can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Shaftesbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the freeholder of her basement flat in Shaftesbury, Jennifer started the lease extension process just as the lease was approaching the crucial 80-year mark. The legal work was concluded in April 2013. The landlord’s fees were negotiated to less than 550 pounds.
Last Christmas we were contacted by Mr and Mrs. F Laurent , who moved into a basement flat in Shaftesbury in February 1996. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical premises in Shaftesbury with a long lease were worth £218,400. The mid-range ground rent payable was £60 collected quarterly. The lease ended in 2085. Taking into account 59 years as a residual term we estimated the premium to the landlord to extend the lease to be within £27,600 and £31,800 not including legals.
In 2011 we were phoned by Mr Archie Díaz who, having acquired a basement apartment in Shaftesbury in November 1999. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparable properties in Shaftesbury with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease came to a finish in 2105. Taking into account 79 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.