It’s a harsh truth that a Shillington residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Shillington property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term dips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Shillington will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold properties in Shillington with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate 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. |
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you increased control over the value of your Shillington leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Michael was the the leasehold owner of a 2 bedroom apartment in Shillington on the market with a lease of just over fifty eight years unexpired. Michael on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Michael to invoke his statutory right. Michael obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Last Christmas we were e-mailed by Mr Aaron Walker , who was assigned a lease of a one bedroom flat in Shillington in July 1998. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Similar flats in Shillington with a long lease were worth £216,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish in 2083. Given that there were 58 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.
Last year we were approach by Mr and Mrs. U Gunderson , who acquired a basement flat in Shillington in October 2011. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparable homes in Shillington with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease came to a finish in 2103. Having 78 years left we approximated the compensation to the freeholder for the lease extension to be between £7,600 and £8,800 not including expenses.