Shirehampton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Shirehampton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Shirehampton you really ought to check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Shirehampton with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Shirehampton can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in lease extensions.
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 in-depth market knowledge 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.
Two years ago Hugo, came critically near to the 80-year mark with the lease on his purpose- built flat in Shirehampton. In buying his property twenty years ago, the lease term was of little importance. Fortunately, he became aware that he would imminently be paying way over the odds for a lease extension. Hugo extended the lease at the eleventh hour last July. Hugo and the freeholder via the managing agents in the end agreed on the final figure of £5,000 . If he failed to meet the deadline, the premium would have escalated by at least £1,100.
Last year we were approach by Dr Max Martin , who took over the lease of a studio apartment in Shirehampton in May 2001. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparable premises in Shirehampton with 100 year plus lease were valued about £203,200. The average ground rent payable was £65 collected quarterly. The lease terminated on 7 January 2086. Having 61 years unexpired we calculated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of expenses.
Last Spring we were approach by Dr Elijah Cox , who owned a first floor flat in Shirehampton in September 2002. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative flats in Shirehampton with a long lease were worth £260,000. The average amount of ground rent was £50 billed quarterly. The lease ran out on 8 October 2097. Having 72 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.