Unfortunately that a Shirehampton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Shirehampton property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining dips under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Shirehampton will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Shirehampton with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Halifax | |
| Santander | |
| Royal Bank of Scotland |
Lease extensions in Shirehampton can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Subsequent to lengthy negotiations with the freeholder of her purpose-built flat in Shirehampton, Amber started the lease extension process as the eighty year mark was quickly advancing. The lease extension completed in January 2012. The landlord’s costs were kept to an absolute minimum.
In 2009 we were called by Dr M Smith who, having purchased a ground floor apartment in Shirehampton in March 2010. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Shirehampton with 100 year plus lease were worth £166,400. The average ground rent payable was £60 billed quarterly. The lease terminated on 11 September 2080. Taking into account 54 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 not including professional charges.
Mr and Mrs. U Moore moved into a one bedroom flat in Shirehampton in September 2002. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Similar homes in Shirehampton with a long lease were in the region of £232,800. The average amount of ground rent was £45 invoiced monthly. The lease finished in 2091. Having 65 years outstanding we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.