As the length of the unexpired term of a Earl Shilton domestic lease decreases so does its value and therefore the value of your property. Where the lease has, more than 125 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Earl Shilton will meet the qualifying criteria; however a conveyancer will be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold 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 premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with procure Earl Shilton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
14 months ago Jonathan, came critically close to the 80-year mark with the lease on his one bedroom flat in Earl Shilton. In buying his flat twenty years previously, the length of the lease was of no importance. As luck would have it, he became aware that he would imminently be paying an escalated premium for a lease extension. Jonathan extended the lease just under the wire in June. Jonathan and the landlord in the end agreed on a premium of £5,000 . If he not met the deadline, the price would have escalated by a minimum £1,075.
Dr K Anderson bought a basement apartment in Earl Shilton in September 2008. We are asked if we could estimate the price would be to prolong the lease by 90 years. Identical flats in Earl Shilton with a long lease were worth £198,800. The average amount of ground rent was £55 collected per annum. The lease ended on 27 June 2081. Having 55 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 not including fees.
Last month we were contacted by Dr Aarav Wood , who owned a first floor apartment in Earl Shilton in January 1998. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Earl Shilton with an extended lease were in the region of £295,000. The mid-range ground rent payable was £50 collected per annum. The lease lapsed on 7 June 2101. Having 75 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.