The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Shanklin may extend the lease for a further 90 years under statute. Please give careful consideration before delaying your Shanklin lease extension. Postponing the costs today simply escalates the price you will ultimately be required to pay for a lease extension.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Shanklin can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in lease extensions.
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 a wealth of experience procuring Shanklin lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joshua was the the leasehold owner of a conversion apartment in Shanklin on the market with a lease of a little over sixty years remaining. Joshua on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Joshua to exercise his statutory right. Joshua obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Mr Austin Rodríguez completed a recently refurbished apartment in Shanklin in July 2011. The question was if we could estimate the price would be for a 90 year extension to my lease. Identical homes in Shanklin with an extended lease were worth £166,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ended in 2079. Taking into account 54 years unexpired we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of costs.
Last Winter we were e-mailed by Dr W Hill , who bought a ground floor apartment in Shanklin in May 2006. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Similar premises in Shanklin with a long lease were worth £232,800. The mid-range ground rent payable was £45 billed every twelve months. The lease expiry date was on 4 February 2090. Considering the 65 years outstanding we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus fees.