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 your lease gets more expensive. It is the case that most Shirehampton tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Shirehampton you would be well advised to investigate if your lease has between 70 and 90 years left. There are good reasons why a Shirehampton leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is actioned without delay
Leasehold properties in Shirehampton with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Barnsley Building Society | |
| Nationwide Building Society | |
| Skipton Building Society |
Engaging our service gives you enhanced control over the value of your Shirehampton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jamie owned a high value apartment in Shirehampton on the market with a lease of a little over fifty eight years outstanding. Jamie informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jamie to invoke his statutory right. Jamie procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Autumn we were e-mailed by Mr and Mrs. F André , who was assigned a lease of a one bedroom apartment in Shirehampton in August 1999. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparative residencies in Shirehampton with 100 year plus lease were valued about £280,000. The average amount of ground rent was £55 collected per annum. The lease came to a finish in 2103. Having 77 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.
In 2014 we were contacted by Ms Lucy Rogers who, having took over the lease of a ground floor apartment in Shirehampton in February 2009. The question was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Identical flats in Shirehampton with a long lease were valued about £183,600. The average ground rent payable was £65 collected monthly. The lease elapsed in 2083. Taking into account 57 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of expenses.