The nearer a residential lease in Shirehampton gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of 99 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner as opposed to later. Most flat owners in Shirehampton will qualify for this right; however a conveyancing solicitor will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Shirehampton with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Using our service gives you enhanced control over the value of your Shirehampton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the freeholder of her garden apartment in Shirehampton, Ellie commenced the lease extension process as the eighty year mark was quickly approaching. The lease extension completed in June 2009. The freeholder’s fees were restricted to slightly above 650 GBP.
In 2014 we were e-mailed by Mr I Bailey who, having completed a one bedroom flat in Shirehampton in July 2007. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Identical properties in Shirehampton with a long lease were in the region of £285,000. The average amount of ground rent was £55 billed monthly. The lease terminated in 2105. Taking into account 80 years outstanding we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
Last month we were contacted by Mr I Dupont , who acquired a one bedroom flat in Shirehampton in June 2004. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative homes in Shirehampton with 100 year plus lease were valued about £200,800. The average amount of ground rent was £65 invoiced monthly. The lease lapsed on 5 May 2085. Taking into account 60 years remaining we estimated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 exclusive of costs.