The only way is down when it comes to Shard End lease terms. Shard End leaseholds that have a remaining term lower than 80 years will reduce in value at a rapid rate, and the cost to extend your lease will increase.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| 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 |
Using our service gives you increased control over the value of your Shard End leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Liam was the the leasehold owner of a conversion apartment in Shard End on the market with a lease of fraction over 59 years outstanding. Liam on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Liam to exercise his statutory right. Liam procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mrs U Clarke acquired a studio apartment in Shard End in May 1995. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparable homes in Shard End with a long lease were valued around £225,400. The average amount of ground rent was £45 collected yearly. The lease lapsed on 8 November 2090. Having 64 years unexpired we calculated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 not including costs.
Last month we were e-mailed by Mr L Davies , who purchased a first floor apartment in Shard End in October 2006. We are asked if we could estimate the price could be to prolong the lease by ninety years. Similar residencies in Shard End with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 collected annually. The lease terminated in 2101. Given that there were 75 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.