Shard End leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Shard End residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Shard End you really ought to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Shard End with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Shard End,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shard End valuers.
Off the back of lengthy correspondence with the freeholder of her garden apartment in Shard End, Jessica commenced the lease extension process as the eighty year mark was swiftly nearing. The transaction was concluded in November 2006. The landlord’s costs were negotiated to under 450 GBP.
Dr Bethany Ramírez acquired a basement apartment in Shard End in July 2007. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative residencies in Shard End with a long lease were worth £168,800. The average ground rent payable was £60 invoiced quarterly. The lease elapsed in 2079. Taking into account 55 years left we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of fees.
Mr T Watson acquired a garden apartment in Shard End in October 2006. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative premises in Shard End with an extended lease were worth £235,200. The average amount of ground rent was £45 invoiced every twelve months. The lease elapsed on 24 November 2090. Taking into account 66 years unexpired we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.