Shirehampton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Shirehampton tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Shirehampton you must investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Shirehampton can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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.
Off the back of unsuccessful correspondence with the landlord of her ground floor flat in Shirehampton, Catherine initiated the lease extension process just as the lease was coming close to the crucial 80-year threshold. The transaction was concluded in February 2009. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were contacted by Mr Benjamin Johnson who, having owned a studio flat in Shirehampton in July 2004. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparable premises in Shirehampton with a long lease were in the region of £176,200. The average amount of ground rent was £65 collected every twelve months. The lease finished on 16 January 2082. Having 56 years as a residual term we calculated the premium to the landlord for the lease extension to be between £29,500 and £34,000 not including professional charges.
In 2011 we were called by Mr and Mrs. R Ward who, having bought a one bedroom flat in Shirehampton in August 2008. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Comparative homes in Shirehampton with 100 year plus lease were worth £235,200. The mid-range ground rent payable was £45 billed per annum. The lease terminated in 2092. Having 66 years as a residual term we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.