Shirehampton leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Shirehampton will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Shirehampton with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Retaining our service gives you enhanced control over the value of your Shirehampton leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Oscar, started to get near to the 80-year threshold with the lease on his first floor apartment in Shirehampton. In buying his property two decades ago, the lease term was of little significance. Fortunately, it dawned on him that he would soon be paying an inflated amount for a lease extension. Oscar was able to extend his lease just in the nick of time last July. Oscar and the freeholder ultimately agreed on sum of £5,500 . If he not met the deadline, the sum would have escalated by a minimum £975.
In 2014 we were called by Mr and Mrs. E Hill who, having was assigned a lease of a recently refurbished flat in Shirehampton in January 2009. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical properties in Shirehampton with a long lease were valued around £275,000. The average amount of ground rent was £55 collected monthly. The lease finished on 20 February 2102. Considering the 77 years outstanding we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.
In 2013 we were e-mailed by Ms Sian Fournier who, having moved into a first floor apartment in Shirehampton in April 2005. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Identical residencies in Shirehampton with an extended lease were valued around £183,600. The mid-range amount of ground rent was £65 billed annually. The lease finished on 28 June 2082. Given that there were 57 years left we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.