Shirehampton leases on domestic deteriorating in value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Shirehampton will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Shirehampton with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Lease extensions in Shirehampton can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer 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 procuring Shirehampton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ryan was the the leasehold owner of a conversion flat in Shirehampton being sold with a lease of a few days over 61 years left. Ryan informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2014 we were called by Mr and Mrs. K James who, having owned a one bedroom apartment in Shirehampton in May 2006. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Comparable properties in Shirehampton with 100 year plus lease were in the region of £264,000. The mid-range ground rent payable was £60 billed quarterly. The lease lapsed on 24 January 2078. Having 53 years left we calculated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 not including professional charges.
Last Spring we were e-mailed by Mrs D Phillips , who purchased a basement apartment in Shirehampton in March 2009. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar properties in Shirehampton with an extended lease were valued about £220,400. The average ground rent payable was £45 billed per annum. The lease came to a finish on 24 March 2089. Having 64 years left we estimated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 plus legals.