On the balance of probabilities where you own a flat in Shard End you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Retaining our service gives you enhanced control over the value of your Shard End leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Alexander, came very close to the 80-year mark with the lease on his garden flat in Shard End. Having purchased his flat two decades ago, the unexpired term was of minimal relevance. Thankfully, he became aware that he needed to take steps soon on a lease extension. Alexander extended the lease just ahead of time in June. Alexander and the freeholder subsequently agreed on sum of £5,000 . If the lease had slid lower than eighty years, the premium would have escalated by a minimum £950.
In 2009 we were called by Mr and Mrs. E Ali who, having took over the lease of a one bedroom apartment in Shard End in September 2008. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable flats in Shard End with an extended lease were valued about £210,600. The average ground rent payable was £45 invoiced quarterly. The lease ran out in 2088. Taking into account 62 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 plus expenses.
Last Christmas we were contacted by Ms Morgan Moore , who acquired a garden apartment in Shard End in June 2011. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Similar properties in Shard End with a long lease were worth £265,000. The average ground rent payable was £50 invoiced annually. The lease finished in 2099. Having 73 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.