The re-sale value of a leasehold property in Shillington depends on how long the lease has remaining. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that all matters can be addressed well before the eighty year threshold. Statute enables Shillington qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Shillington with over one hundred years left 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 gives you better control over the value of your Shillington leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Zachary, started to get close to the 80-year mark with the lease on his two bedroom apartment in Shillington. Having bought his home 18 years previously, the unexpired term was of no bearing. Luckily, it dawned on him that he needed to take action soon on a lease extension. Zachary extended the lease just ahead of time last August. Zachary and the freeholder eventually settled on sum of £6,000 . If he failed to meet the deadline, the premium would have escalated by a minimum £925.
Last September we were approach by Mr U Torres , who took over the lease of a purpose-built flat in Shillington in January 2002. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Identical premises in Shillington with 100 year plus lease were worth £300,000. The average ground rent payable was £50 billed annually. The lease elapsed on 5 May 2102. Considering the 76 years left we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Mr and Mrs. H Davies bought a purpose-built apartment in Shillington in June 2009. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparative residencies in Shillington with an extended lease were valued about £257,800. The mid-range amount of ground rent was £65 invoiced annually. The lease ended in 2091. Taking into account 65 years outstanding we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including fees.