The closer a residential lease in Shillington gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond 125 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Shillington will qualify for this right; that being said a conveyancing solicitor will be able to confirm if 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 conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | 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. |
The conveyancers that we work with handle Shillington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to protracted discussions with the freeholder of her first floor flat in Shillington, Sian commenced the lease extension process just as her lease was nearing the all-important 80-year deadline. The transaction was finalised in February 2013. The landlord’s charges were kept to an absolute minimum.
In 2014 we were e-mailed by Mrs F Bailey who, having was assigned a lease of a purpose-built apartment in Shillington in April 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable flats in Shillington with an extended lease were in the region of £181,600. The mid-range ground rent payable was £55 collected quarterly. The lease end date was in 2078. Having 52 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.
Dr C Bernard moved into a garden flat in Shillington in January 1995. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Shillington with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 invoiced annually. The lease finished on 21 September 2098. Having 72 years outstanding we approximated the premium to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of expenses.