It’s a harsh truth that a Shinfield residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Shinfield property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be payable. Most leasehold owners in Shinfield will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Shinfield,the lease extension lawyers 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 Shinfield valuers.
Tyler owned a studio flat in Shinfield on the market with a lease of a few days over fifty eight years left. Tyler on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Tyler to invoke his statutory right. Tyler obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2012 we were e-mailed by Mr and Mrs. N González who, having owned a first floor apartment in Shinfield in November 2000. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative homes in Shinfield with 100 year plus lease were valued about £270,000. The average amount of ground rent was £55 collected per annum. The lease terminated on 20 August 2100. Having 75 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
Last Summer we were contacted by Dr K Rodríguez , who moved into a ground floor apartment in Shinfield in May 2012. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Similar homes in Shinfield with an extended lease were in the region of £173,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease concluded on 1 June 2080. Given that there were 55 years unexpired we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.