When it comes to domestic leasehold property in Shefford, you are actually purchasing an entitlement to reside in a property for a set period of time. These days 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 should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are less than 80 years remaining. Leasehold owners in Shefford with a lease nearing 81 years left should seriously consider extending it as soon as possible. When a lease has below 80 years outstanding, under the relevant legislation the landlord can calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Shefford,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shefford valuers.
Sebastian was the the leasehold proprietor of a high value flat in Shefford on the market with a lease of just over 61 years outstanding. Sebastian informally approached his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Sebastian to invoke his statutory right. Sebastian obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2013 we were called by Mr and Mrs. J Cooper who, having purchased a ground floor flat in Shefford in May 1999. The question was if we could approximate the premium would be for a 90 year extension to my lease. Identical residencies in Shefford with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 collected annually. The lease expiry date was in 2104. Taking into account 78 years outstanding we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.
Last July we were e-mailed by Mr R Walker , who purchased a studio flat in Shefford in August 1998. We are asked if we could approximate the price could be to extend the lease by 90 years. Identical homes in Shefford with a long lease were worth £267,600. The mid-range ground rent payable was £65 collected every twelve months. The lease lapsed on 26 March 2093. Given that there were 67 years outstanding we calculated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including professional charges.