As the the remaining lease term of a Great Shelford domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, in excess of 125 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has under 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 extend the lease without delay. The majority of flat owners in Great Shelford will meet the qualifying criteria; that being said a lawyer should be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure 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.
Jack owned a high value flat in Great Shelford on the market with a lease of fraction over 59 years left. Jack informally approached his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Jack to exercise his statutory right. Jack procured expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the property.
Last Christmas we were phoned by Dr J Evans , who was assigned a lease of a first floor apartment in Great Shelford in March 2009. The dilemma was if we could estimate the price would likely be to prolong the lease by ninety years. Similar residencies in Great Shelford with an extended lease were in the region of £200,800. The average amount of ground rent was £65 invoiced quarterly. The lease finished on 6 May 2086. Given that there were 60 years outstanding we approximated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of expenses.
Last July we were phoned by Ms Mia Martinez , who was assigned a lease of a purpose-built flat in Great Shelford in March 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Similar residencies in Great Shelford with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 collected every twelve months. The lease terminated on 17 October 2097. Considering the 71 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.