The nearer a domestic lease in Shefford nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond 100 years to run then this decrease may be of little impact however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Shefford will meet the qualifying criteria; nevertheless a lawyer will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Shefford 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 conveyancer we work with provide it.
Last Winter Teddy, came dangerously near to the eighty-year threshold with the lease on his first floor flat in Shefford. In buying his property 19 years ago, the unexpired term was of no concern. Luckily, it dawned on him that he needed to take action soon on a lease extension. Teddy was able to extend his lease just under the wire in July. Teddy and the freeholder subsequently agreed on a premium of £5,000 . If he not met the deadline, the figure would have escalated by a minimum £1,000.
Last Summer we were phoned by Dr Rhiannon Gunderson , who took over the lease of a garden flat in Shefford in April 1997. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative properties in Shefford with an extended lease were in the region of £257,800. The average ground rent payable was £65 billed monthly. The lease elapsed on 28 July 2090. Considering the 65 years left we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of costs.
Mrs U Ali took over the lease of a basement apartment in Shefford in October 2011. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparative homes in Shefford with 100 year plus lease were in the region of £191,400. The average ground rent payable was £55 billed per annum. The lease elapsed on 12 October 2079. Having 54 years remaining we calculated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of expenses.