There is no doubt about it a leasehold property in Shard End is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 100 years to run then this decrease may be fractional that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Shard End will meet the qualifying criteria; that being said a conveyancing solicitor will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 better control over the value of your Shard End leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the freeholder of her basement apartment in Shard End, Ellen commenced the lease extension process as the 80 year mark was rapidly coming. The legal work was finalised in May 2013. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were contacted by Ms Phoebe Bonnet who, having bought a purpose-built flat in Shard End in November 2005. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative homes in Shard End with 100 year plus lease were worth £246,800. The average amount of ground rent was £60 billed quarterly. The lease lapsed in 2075. Considering the 50 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 plus expenses.
Mr and Mrs. W Davis purchased a studio flat in Shard End in October 1998. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative premises in Shard End with 100 year plus lease were in the region of £208,200. The average amount of ground rent was £65 invoiced yearly. The lease concluded in 2086. Considering the 61 years outstanding we calculated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus fees.