Shipley residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Shipley can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Shipley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Jake, came critically near to the 80-year threshold with the lease on his leasehold flat in Shipley. Having purchased his property 18 years ago, the length of the lease was of little interest. Fortunately, he recognised he needed to take action soon on Extending the lease. Jake arranged for a lease extension just in the nick of time in May. Jake and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If he not met the deadline, the sum would have escalated by at least £875.
Mrs T Gray bought a garden apartment in Shipley in June 1998. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparative premises in Shipley with an extended lease were worth £235,600. The average amount of ground rent was £60 billed monthly. The lease concluded in 2087. Taking into account 62 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including fees.
In 2012 we were phoned by Dr K Bernard who, having was assigned a lease of a studio apartment in Shipley in March 1997. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative flats in Shipley with an extended lease were in the region of £174,200. The average ground rent payable was £55 billed yearly. The lease expired in 2076. Given that there were 51 years left we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus expenses.