The nearer a residential lease in Great Shelford nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of one hundred years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner than later. Most flat owners in Great Shelford will qualify for this right; nevertheless a conveyancer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Yorkshire 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. |
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.
Trailing lengthy negotiations with the landlord of her one bedroom apartment in Great Shelford, Amber initiated the lease extension process as the eighty year deadline was fast approaching. The lease extension was concluded in July 2005. The freeholder’s fees were restricted to about five hundred GBP.
Last month we were phoned by Dr F Walker , who completed a studio flat in Great Shelford in November 2008. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar residencies in Great Shelford with a long lease were in the region of £176,200. The mid-range ground rent payable was £65 collected annually. The lease ran out in 2082. Considering the 56 years left we calculated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 plus fees.
Last Winter we were phoned by Mr and Mrs. H Simon , who was assigned a lease of a studio flat in Great Shelford in July 1995. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparable residencies in Great Shelford with an extended lease were valued around £242,600. The average amount of ground rent was £45 collected per annum. The lease concluded in 2093. Given that there were 67 years as a residual term we approximated the premium to the landlord to extend the lease to be between £11,400 and £13,200 not including expenses.