As the length of the unexpired term of a Shifnal residential lease lessens so does its value and therefore the value of your property. Where the residual term has, beyond one hundred years remaining then this decrease may be negligible however there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Shifnal will qualify for this right; nevertheless a lawyer can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Retaining our service gives you enhanced control over the value of your Shifnal leasehold, as your property will be more valuable and saleable in respect of lease length should you want 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.
Trailing lengthy negotiations with the freeholder of her ground floor flat in Shifnal, Amber commenced the lease extension process as the 80 year deadline was swiftly approaching. The legal work was finalised in May 2015. The landlord’s fees were kept to an absolute minimum.
Last Spring we were phoned by Mr and Mrs. U Vincent , who acquired a basement flat in Shifnal in November 2002. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Comparable properties in Shifnal with an extended lease were worth £173,800. The average amount of ground rent was £60 invoiced yearly. The lease expired on 26 July 2080. Having 55 years left we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus legals.
Last year we were e-mailed by Mr R Mitchell , who completed a first floor apartment in Shifnal in June 2002. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Similar homes in Shifnal with an extended lease were valued around £235,200. The average ground rent payable was £45 invoiced monthly. The lease expired on 14 November 2091. Taking into account 66 years left we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.