Shanklin leases on residential deteriorating in value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Shanklin will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some circumstances you may not be entitled. There are also strict timetables and formalities to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Shanklin,the lease extension lawyers 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.
Off the back of protracted negotiations with the freeholder of her first floor apartment in Shanklin, Kayleigh initiated the lease extension process just as her lease was nearing the all-important 80-year deadline. The lease extension was finalised in July 2009. The landlord’s charges were negotiated to approximately 550 GBP.
In 2010 we were approached by Mrs S Hall who, having took over the lease of a one bedroom flat in Shanklin in March 1996. The dilemma was if we could estimate the price could be for a 90 year lease extension. Similar properties in Shanklin with 100 year plus lease were valued around £280,000. The average ground rent payable was £55 collected per annum. The lease expiry date was in 2104. Having 78 years remaining we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of expenses.
In 2013 we were approached by Mrs M Edwards who, having moved into a newly refurbished apartment in Shanklin in July 1999. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Shanklin with 100 year plus lease were in the region of £191,000. The mid-range amount of ground rent was £65 billed monthly. The lease finished in 2084. Given that there were 58 years remaining we approximated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of costs.