Shawbury leases on domestic properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Shawbury will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and formalities to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with undertake Shawbury lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
During the course of the last few months Max, came precariously near to the eighty-year mark with the lease on his studio apartment in Shawbury. In buying his property two decades ago, the length of the lease was of minimal importance. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Max extended the lease just under the wire last September. Max and the freeholder in the end agreed on an amount of £6,000 . If the lease had slipped below eighty years, the price would have increased by at least £925.
Last Christmas we were contacted by Dr Grace Martínez , who was assigned a lease of a studio apartment in Shawbury in May 2007. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Comparative homes in Shawbury with an extended lease were valued around £218,400. The mid-range amount of ground rent was £60 collected quarterly. The lease expiry date was in 2085. Taking into account 59 years remaining we approximated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of professional charges.
Mr N Martínez purchased a first floor apartment in Shawbury in April 2003. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Similar residencies in Shawbury with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced per annum. The lease finished in 2105. Given that there were 79 years unexpired we estimated the premium to the landlord for the lease extension to be within £7,600 and £8,800 not including legals.