As the the remaining lease term of a Shanklin residential lease lessens so does its value and therefore the value of your property. If the residual term has, beyond 125 years to run then this decrease may be fractional however there will become a stage when a lease has less than eighty years unexpired 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 consider extending without delay. Many flat owners in Shanklin will qualify for this right; that being said a conveyancer should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Shanklin with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Shanklin,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shanklin valuers.
Isaac was the the leasehold owner of a studio apartment in Shanklin on the market with a lease of a little over 61 years unexpired. Isaac informally approached his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Isaac to invoke his statutory right. Isaac procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2014 we were contacted by Mr and Mrs. Y Kelly who, having bought a one bedroom flat in Shanklin in October 1996. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Comparable premises in Shanklin with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 collected every twelve months. The lease ran out on 10 July 2094. Given that there were 68 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
Dr B Lefebvre was assigned a lease of a one bedroom flat in Shanklin in July 1996. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical properties in Shanklin with a long lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease ended in 2105. Taking into account 79 years unexpired we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.