The only way is down when it comes to Shaftesbury lease terms. Shaftesbury flats that have a residual term less than than 80 years will reduce in market price at a rapid rate, and the cost of extending your lease will rise.
Leasehold premises in Shaftesbury with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Shaftesbury,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shaftesbury valuers.
In the wake of 6 months of protracted negotiations with the freeholder of her leasehold flat in Shaftesbury, Paige initiated the lease extension process just as her lease was approaching the crucial eighty-year deadline. The transaction was concluded in November 2009. The freeholder’s costs were kept to an absolute minimum.
Last Winter we were called by Mr and Mrs. A Green , who owned a ground floor flat in Shaftesbury in January 1997. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparable homes in Shaftesbury with 100 year plus lease were valued around £267,600. The mid-range amount of ground rent was £65 billed per annum. The lease termination date was in 2092. Taking into account 67 years unexpired we approximated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 not including costs.
Last year we were called by Mr E Lewis , who completed a first floor apartment in Shaftesbury in January 2006. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable premises in Shaftesbury with a long lease were worth £201,200. The mid-range amount of ground rent was £55 collected monthly. The lease finished on 10 June 2081. Given that there were 56 years remaining we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of costs.