For those whose Shirehampton home is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
Leasehold residencies in Shirehampton with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a landlord in Shirehampton,the lease extension experts 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 Shirehampton valuers.
During the course of the last few months Joseph, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Shirehampton. Having purchased his home 18 years ago, the length of the lease was of little significance. Luckily, he realised he would imminently be paying way over the odds for Extending the lease. Joseph extended the lease just under the wire last May. Joseph and the freeholder in the end agreed on a premium of £5,500 . If the lease had slid lower than eighty years, the price would have increased by at least £1,025.
In 2012 we were phoned by Mr and Mrs. T Smith who, having purchased a garden apartment in Shirehampton in June 2002. The question was if we could approximate the premium would be to prolong the lease by an additional years. Similar premises in Shirehampton with an extended lease were worth £235,200. The mid-range ground rent payable was £45 invoiced per annum. The lease termination date was in 2092. Having 66 years as a residual term we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.
Last November we were e-mailed by Mr Oscar Ali , who bought a ground floor apartment in Shirehampton in September 2000. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparable residencies in Shirehampton with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease finished in 2103. Having 77 years unexpired we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.