The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Shirehampton have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Shirehampton lease extension. Shelving the costs today simply increases the price you will ultimately be required to pay for a lease extension.
Leasehold residencies in Shirehampton with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Shirehampton can be a difficult process. We recommend you procure guidance from a lawyer and surveyor 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 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.
Last year Jackson, started to get close to the 80-year threshold with the lease on his first floor flat in Shirehampton. In buying his home two decades ago, the lease term was of no relevance. by good luck, it dawned on him that he would soon be paying way over the odds for Extending the lease. Jackson was able to extend his lease just ahead of time in March. Jackson and the landlord who owned the flat above ultimately settled on sum of £5,500 . If the lease had slipped to less than 80 years, the premium would have become more costly by at least £1,025.
In 2010 we were approached by Mrs U Mercier who, having acquired a studio apartment in Shirehampton in July 1997. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical properties in Shirehampton with an extended lease were in the region of £280,000. The average amount of ground rent was £55 collected annually. The lease elapsed on 14 February 2105. Having 79 years remaining we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus fees.
In 2013 we were called by Ms Anna Johnson who, having purchased a studio flat in Shirehampton in May 1998. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable residencies in Shirehampton with 100 year plus lease were valued about £191,000. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish on 12 January 2084. Given that there were 58 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 not including fees.