Sheffield leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Sheffield will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your Sheffield leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Eli was the the leasehold owner of a conversion apartment in Sheffield on the market with a lease of a few days over 61 years left. Eli informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Eli to invoke his statutory right. Eli obtained expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
In 2010 we were approached by Mr and Mrs. N Brown who, having was assigned a lease of a newly refurbished flat in Sheffield in June 2002. The question was if we could approximate the price would be for a ninety year extension to my lease. Identical premises in Sheffield with a long lease were worth £290,000. The mid-range ground rent payable was £45 invoiced yearly. The lease concluded on 10 March 2099. Taking into account 73 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
In 2009 we were called by Mr and Mrs. V Collins who, having acquired a first floor apartment in Sheffield in September 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable premises in Sheffield with an extended lease were valued around £240,600. The mid-range amount of ground rent was £60 collected quarterly. The lease ran out in 2088. Given that there were 62 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including expenses.