Shaftesbury leases on domestic deteriorating in value. if your lease has about ninety years left, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Shaftesbury will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some situations you may not qualify. There are prescribed timetables and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Shaftesbury with more than 100 years unexpired on the lease are sometimes referred to as ‘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 freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Shaftesbury,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shaftesbury valuers.
16 months ago Callum, started to get close to the eighty-year threshold with the lease on his first floor apartment in Shaftesbury. Having bought his home two decades ago, the length of the lease was of little concern. Thankfully, he recognised he would soon be paying way over the odds for Extending the lease. Callum extended the lease just ahead of time last March. Callum and the freeholder via the management company subsequently agreed on sum of £5,000 . If the lease had fallen to less than 80 years, the figure would have escalated by at least £1,125.
Dr W Turner bought a first floor apartment in Shaftesbury in November 2007. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Shaftesbury with an extended lease were in the region of £225,800. The average ground rent payable was £60 collected quarterly. The lease elapsed on 19 February 2086. Considering the 60 years left we calculated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus costs.
In 2014 we were phoned by Ms Ashleigh King who, having moved into a ground floor flat in Shaftesbury in May 2005. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Identical properties in Shaftesbury with 100 year plus lease were valued around £210,000. The mid-range ground rent payable was £50 billed annually. The lease expired in 2106. Having 80 years remaining we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.