The closer a domestic lease in Shillington nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond 100 years remaining then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner than later. Many flat owners in Shillington will meet the qualifying criteria; that being said a conveyancer can confirm whether you are eligible 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.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Shillington,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shillington valuers.
Rory was the the leasehold owner of a high value flat in Shillington being sold with a lease of a little over 59 years remaining. Rory informally approached his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Rory to exercise his statutory right. Rory obtained expert advice and secured an acceptable resolution informally and readily saleable.
Mrs Harriet Gunderson moved into a basement flat in Shillington in May 2010. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable residencies in Shillington with an extended lease were valued about £223,400. The average amount of ground rent was £60 invoiced monthly. The lease elapsed on 14 November 2084. Taking into account 59 years outstanding we calculated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 not including fees.
In 2011 we were approached by Mr and Mrs. W David who, having was assigned a lease of a first floor apartment in Shillington in April 1999. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Similar premises in Shillington with an extended lease were worth £205,000. The average ground rent payable was £50 collected monthly. The lease terminated on 26 May 2104. Given that there were 79 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.