The re-sale value of a leasehold property in Shirehampton depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be finalised in advance of the 80 year threshold. Leasehold Reform legislation enables Shirehampton qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Shirehampton with over 100 years unexpired on the lease are sometimes referred to as ‘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 buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Godiva Mortgages | 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. |
| 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 guidance from a conveyancer 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 procuring Shirehampton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Cameron owned a conversion apartment in Shirehampton on the market with a lease of a little over sixty years outstanding. Cameron informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Cameron to exercise his statutory right. Cameron obtained expert advice and was able to make an informed decision and deal with the matter and sell the flat.
Last Summer we were contacted by Mr and Mrs. M Cooper , who took over the lease of a studio apartment in Shirehampton in August 2002. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparative flats in Shirehampton with 100 year plus lease were valued about £256,600. The average ground rent payable was £60 billed monthly. The lease terminated on 19 November 2078. Taking into account 52 years remaining we calculated the compensation to the landlord to extend the lease to be between £41,800 and £48,400 exclusive of professional charges.
Last Summer we were approach by Mr and Mrs. N Thompson , who took over the lease of a garden flat in Shirehampton in September 2003. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Similar properties in Shirehampton with 100 year plus lease were in the region of £215,600. The mid-range ground rent payable was £45 collected per annum. The lease end date was in 2088. Given that there were 62 years remaining we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus legals.