With a domestic leasehold premises in Shawbury, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Anyone in Shawbury with a lease nearing 81 years unexpired should seriously think of extending it without delay. When a lease has fewer than 80 years remaining, under the relevant statute the landlord is entitled to calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Shawbury with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
Last Winter Dylan, started to get near to the 80-year mark with the lease on his purpose- built flat in Shawbury. Having purchased his property two decades ago, the length of the lease was of minimal bearing. Fortunately, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Dylan was able to extend his lease just under the wire last March. Dylan and the landlord eventually agreed on an amount of £5,000 . If the lease had dropped below eighty years, the price would have become more exhorbitant by a minimum £850.
Mr B Edwards took over the lease of a first floor apartment in Shawbury in November 2007. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable homes in Shawbury with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease lapsed in 2097. Given that there were 72 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus costs.
Dr D Ali completed a recently refurbished flat in Shawbury in January 2011. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable residencies in Shawbury with 100 year plus lease were in the region of £233,200. The average ground rent payable was £60 invoiced yearly. The lease elapsed on 23 March 2086. Taking into account 61 years outstanding we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of fees.