There is no doubt about it a leasehold flat or house in Shildon is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. Many flat owners in Shildon will qualify for this right; however a lawyer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
Regardless of whether you are a tenant or a freeholder in Shildon,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shildon valuers.
Last year Luke, started to get near to the eighty-year mark with the lease on his leasehold flat in Shildon. Having bought his flat two decades ago, the length of the lease was of minimal interest. by good luck, he became aware that he needed to take steps soon on Extending the lease. Luke extended the lease just under the wire last May. Luke and the freeholder eventually agreed on the final figure of £6,000 . If the lease had descended to less than eighty years, the premium would have escalated by at least £1,125.
In 2014 we were approached by Mrs Francesca Hernández who, having bought a one bedroom flat in Shildon in October 2011. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Shildon with a long lease were in the region of £181,600. The average amount of ground rent was £55 collected monthly. The lease came to a finish in 2077. Given that there were 52 years outstanding we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including fees.
Last Summer we were approach by Mr T Murphy , who bought a newly refurbished apartment in Shildon in August 2006. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparative premises in Shildon with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 billed every twelve months. The lease finished on 13 September 2097. Taking into account 72 years left we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.