Unfortunately that a Great Shelford residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Great Shelford property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be payable. Most flat owners in Great Shelford will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Great Shelford can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 dealing with Great Shelford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Owen, started to get close to the eighty-year mark with the lease on his two bedroom flat in Great Shelford. Having bought his property 18 years ago, the lease term was of little importance. Fortunately, he became aware that he would imminently be paying an inflated amount for Extending the lease. Owen arranged for a lease extension just under the wire in July. Owen and the freeholder ultimately agreed on a premium of £5,000 . If he failed to meet the deadline, the sum would have increased by a minimum £1,100.
Last Winter we were e-mailed by Dr Jack Cox , who acquired a ground floor apartment in Great Shelford in September 1997. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Great Shelford with a long lease were worth £227,800. The mid-range ground rent payable was £45 collected yearly. The lease concluded on 16 July 2090. Taking into account 65 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.
Last Spring we were phoned by Dr Sophia Campbell , who completed a newly refurbished flat in Great Shelford in July 2012. The question was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative premises in Great Shelford with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease elapsed in 2101. Given that there were 76 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.