On the balance of probabilities where you own a flat in Shefford you actually own a long leasehold interest over your property
Leasehold premises in Shefford with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | 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 also be not less than 75 years at the outset of the mortgage. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Shefford leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Omar was the the leasehold owner of a high value apartment in Shefford on the market with a lease of fraction over 61 years outstanding. Omar on an informal basis approached his landlord a well known local-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 initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Omar to exercise his statutory right. Omar obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Mr F Morel owned a ground floor flat in Shefford in February 2006. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar premises in Shefford with an extended lease were in the region of £216,000. The average ground rent payable was £60 collected quarterly. The lease finished on 19 April 2083. Having 58 years outstanding we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus professional charges.
Mr and Mrs. Y Cooper owned a recently refurbished apartment in Shefford in November 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparative premises in Shefford with a long lease were worth £205,000. The average amount of ground rent was £50 billed per annum. The lease termination date was on 14 January 2103. Given that there were 78 years outstanding we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.