It’s a harsh certainty that a Shefford residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Shefford property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be payable. The majority of flat owners in Shefford will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold properties in Shefford with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Shefford can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Shefford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jackson owned a conversion flat in Shefford on the market with a lease of just over 61 years left. Jackson on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of 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 Jackson to exercise his statutory right. Jackson procured expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
Last Autumn we were phoned by Ms Holly Collins , who completed a first floor flat in Shefford in July 2005. The question was if we could approximate the price could be to extend the lease by ninety years. Comparable residencies in Shefford with an extended lease were in the region of £248,000. The mid-range ground rent payable was £65 billed per annum. The lease concluded on 24 May 2089. Given that there were 63 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 not including legals.
In 2014 we were called by Mr and Mrs. S Lefebvre who, having was assigned a lease of a recently refurbished flat in Shefford in July 2001. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Identical homes in Shefford with an extended lease were worth £181,600. The mid-range ground rent payable was £55 invoiced yearly. The lease ended on 24 November 2078. Given that there were 52 years left we approximated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus legals.