Shirehampton residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Shirehampton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After unsuccessful discussions with the freeholder of her studio flat in Shirehampton, Jennifer started the lease extension process just as her lease was coming close to the all-important eighty-year mark. The lease extension was finalised in November 2013. The landlord’s charges were kept to an absolute minimum.
Mrs Yasmin Harris moved into a one bedroom apartment in Shirehampton in January 2003. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Identical homes in Shirehampton with an extended lease were in the region of £210,600. The mid-range ground rent payable was £45 invoiced quarterly. The lease ran out on 15 October 2087. Given that there were 62 years remaining we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including professional charges.
In 2014 we were e-mailed by Dr Jason Rodríguez who, having moved into a ground floor flat in Shirehampton in November 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Similar properties in Shirehampton with 100 year plus lease were valued about £260,000. The average amount of ground rent was £50 collected quarterly. The lease terminated in 2098. Having 73 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.