It’s an underpublicised truth that a Shirehampton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Shirehampton property market.Where your lease has approximately ninety years left, you should start thinking about 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 slips under eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Shirehampton will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Shirehampton can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
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 dealing with Shirehampton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Hugo, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Shirehampton. Having bought his home twenty years ago, the unexpired term was of little significance. As luck would have it, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Hugo arranged for a lease extension just in the nick of time last August. Hugo and the freeholder ultimately agreed on a premium of £6,000 . If he not met the deadline, the premium would have escalated by a minimum £1,100.
Last July we were e-mailed by Mrs Danielle Fournier , who was assigned a lease of a one bedroom apartment in Shirehampton in August 2004. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative premises in Shirehampton with an extended lease were in the region of £270,000. The average amount of ground rent was £55 collected annually. The lease lapsed on 19 November 2102. Considering the 76 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
In 2010 we were called by Mr N Sharif who, having took over the lease of a first floor flat in Shirehampton in March 1999. 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 premises in Shirehampton with a long lease were valued around £176,200. The average amount of ground rent was £65 collected every twelve months. The lease ended on 12 September 2082. Taking into account 56 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 not including legals.