The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Shaftesbury may extend the lease for an additional ninety years under statute. Please think carefully before delaying your Shaftesbury lease extension. Putting off that expense today simply increases the premium you will eventually be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Shaftesbury can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in this area.
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 procuring Shaftesbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ali owned a 2 bedroom apartment in Shaftesbury being marketed with a lease of a few days over 61 years unexpired. Ali on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Ali to exercise his statutory right. Ali procured expert advice and secured an acceptable resolution without resorting to tribunal and sell the flat.
Mrs Emily Alexander completed a studio flat in Shaftesbury in October 2004. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Comparative properties in Shaftesbury with a long lease were valued around £243,000. The average amount of ground rent was £65 collected monthly. The lease came to a finish on 14 June 2089. Considering the 63 years unexpired we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 not including fees.
Last Christmas we were phoned by Mr Zachary Hernández , who owned a first floor flat in Shaftesbury in July 2004. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative residencies in Shaftesbury with 100 year plus lease were in the region of £181,600. The average ground rent payable was £55 billed every twelve months. The lease end date was on 10 October 2078. Considering the 52 years unexpired we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus legals.