The closer a domestic lease in Shaftesbury nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of 100 years to run then this decrease may be negligible that being said there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Shaftesbury will qualify for this right; that being said a conveyancer will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| Skipton Building Society |
The conveyancing solicitors that we work with procure Shaftesbury 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 lawyer we work with provide it.
Last October Archie, came very near to the 80-year mark with the lease on his ground floor flat in Shaftesbury. Having bought his flat two decades ago, the lease term was of no importance. Luckily, he recognised he needed to take action soon on a lease extension. Archie arranged for a lease extension at the eleventh hour last March. Archie and the landlord who owned the flat above ultimately settled on a premium of £5,000 . If the lease had slid below 80 years, the figure would have increased by at least £850.
Last Winter we were contacted by Dr S Campbell , who acquired a purpose-built apartment in Shaftesbury in September 2003. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Shaftesbury with 100 year plus lease were valued around £300,000. The average ground rent payable was £50 invoiced monthly. The lease ended in 2102. Having 76 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.
Last Spring we were phoned by Mr and Mrs. V Lefèvre , who owned a ground floor apartment in Shaftesbury in October 2008. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Shaftesbury with an extended lease were worth £257,800. The average amount of ground rent was £65 billed per annum. The lease ended on 26 July 2091. Considering the 65 years left we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including costs.