There is no doubt about it a leasehold flat or house in Great Shelford is a wasting asset as a result of the shortening lease. If the residual term has, more than 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner rather than later. The majority of flat owners in Great Shelford will meet the qualifying criteria; nevertheless a lawyer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Great Shelford with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Santander | |
| The Mortgage Works |
Retaining our service gives you enhanced control over the value of your Great Shelford leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Ryan, came perilously close to the eighty-year mark with the lease on his studio apartment in Great Shelford. Having bought his home two decades ago, the lease term was of little relevance. Luckily, he became aware that he would soon be paying an escalated premium for a lease extension. Ryan was able to extend his lease just in the nick of time in April. Ryan and the landlord eventually agreed on a premium of £6,000 . If the lease had descended lower than 80 years, the amount would have increased by at least £1,125.
Last Christmas we were contacted by Mr and Mrs. D Jones , who bought a first floor flat in Great Shelford in June 2003. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar homes in Great Shelford with 100 year plus lease were worth £235,200. The average ground rent payable was £45 billed yearly. The lease finished in 2092. Given that there were 66 years remaining we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.
In 2014 we were called by Ms Louise Campbell who, having was assigned a lease of a one bedroom flat in Great Shelford in July 1997. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Similar premises in Great Shelford with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease came to a finish in 2103. Given that there were 77 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.