There is no doubt about it a leasehold property in Great Shelford is a wasting asset as a result of the diminishing lease term. Where the residual term has, over 99 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Many flat owners in Great Shelford will meet the qualifying criteria; that being said a conveyancing solicitor can confirm if you are eligible 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 generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same 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 many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
The lawyers that we work with undertake Great Shelford 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.
In recent months Eli, came dangerously close to the eighty-year threshold with the lease on his ground floor flat in Great Shelford. In buying his flat twenty years ago, the unexpired term was of little interest. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Eli arranged for a lease extension at the eleventh hour last August. Eli and the landlord in the end settled on a premium of £6,000 . If he not met the deadline, the figure would have become more costly by a minimum £1,125.
In 2013 we were contacted by Dr Zoe Peterson who, having bought a studio flat in Great Shelford in April 2009. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable homes in Great Shelford with 100 year plus lease were valued about £166,400. The mid-range ground rent payable was £60 invoiced quarterly. The lease elapsed in 2079. Considering the 54 years left we calculated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus fees.
Mr and Mrs. C Adams purchased a studio flat in Great Shelford in January 2002. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Comparative homes in Great Shelford with an extended lease were in the region of £227,800. The average amount of ground rent was £45 invoiced per annum. The lease finished in 2090. Having 65 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.