It’s an underpublicised truth that a Shirehampton residential lease is a deteriorating 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 reduction being disguised by increases in the Shirehampton property prices.Once your lease nears 85ish years, 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 dips lower than eighty years - otherwise a higher amount will be due. The majority of flat owners in Shirehampton will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
Irrespective of whether you are a tenant or a landlord in Shirehampton,the lease extension experts that we work with will always be willing 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.
Jackson owned a studio flat in Shirehampton on the market with a lease of just over 59 years unexpired. Jackson on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jackson to invoke his statutory right. Jackson procured expert advice and secured satisfactory resolution informally and readily saleable.
In 2013 we were e-mailed by Mr and Mrs. W Peterson who, having owned a garden apartment in Shirehampton in September 1999. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparative residencies in Shirehampton with 100 year plus lease were in the region of £220,400. The mid-range ground rent payable was £45 billed quarterly. The lease ran out on 18 June 2090. Considering the 64 years remaining we estimated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 not including costs.
Last Autumn we were called by Mr C Flores , who bought a garden flat in Shirehampton in January 2001. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable properties in Shirehampton with a long lease were in the region of £270,000. The average amount of ground rent was £55 collected quarterly. The lease lapsed on 26 March 2101. Considering the 75 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.