There is no doubt about it a leasehold property in Shillington is a wasting asset as a result of the shortening lease. If the lease has, more than 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Shillington will meet the qualifying criteria; however a conveyancer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Shillington with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Shillington leasehold, as your property will be more valuable and saleable in terms of lease length should you wish 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 discussions with the landlord of her studio apartment in Shillington, Isabelle initiated the lease extension process just as her lease was nearing the critical 80-year threshold. The lease extension was finalised in November 2012. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were approach by Mr and Mrs. Y Martínez , who owned a first floor apartment in Shillington in July 2004. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Shillington with an extended lease were valued about £174,200. The mid-range amount of ground rent was £55 collected monthly. The lease terminated on 6 November 2076. Considering the 51 years left we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including professional charges.
In 2013 we were e-mailed by Ms Gemma Carter who, having completed a basement flat in Shillington in July 2007. We are asked if we could estimate the premium could be to extend the lease by ninety years. Similar residencies in Shillington with an extended lease were worth £285,000. The mid-range ground rent payable was £45 collected annually. The lease expiry date was on 8 August 2096. Considering the 71 years remaining we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.