The market value of Shirehampton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the unexpired lease term is below than eighty years
Leasehold properties in Shirehampton with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Shirehampton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shirehampton valuers.
Last Christmas Arthur, started to get close to the 80-year threshold with the lease on his two bedroom flat in Shirehampton. Having bought his home two decades ago, the lease term was of little relevance. Luckily, he became aware that he needed to take steps soon on a lease extension. Arthur extended the lease at the eleventh hour last July. Arthur and the freeholder via the management company subsequently agreed on the final figure of £5,500 . If he had missed the deadline, the sum would have increased by a minimum £900.
Last Winter we were called by Ms U King , who acquired a basement flat in Shirehampton in April 2001. The dilemma was if we could estimate the premium would likely be to prolong the lease by ninety years. Identical flats in Shirehampton with a long lease were worth £280,000. The mid-range amount of ground rent was £55 billed per annum. The lease concluded in 2103. Having 78 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.
Last Spring we were called by Mr E King , who was assigned a lease of a recently refurbished apartment in Shirehampton in August 2012. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Shirehampton with a long lease were in the region of £186,000. The average ground rent payable was £65 collected yearly. The lease lapsed on 2 January 2083. Given that there were 58 years outstanding we calculated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of fees.