The market value of Shefford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is below than eighty years
Leasehold premises in Shefford with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Shefford,the lease extension experts 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.
After unsuccessful discussions with the landlord of her ground floor apartment in Shefford, Naomi commenced the lease extension process as the 80 year deadline was swiftly nearing. The transaction completed in October 2008. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were phoned by Mr Kyle Fournier , who purchased a first floor flat in Shefford in April 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Identical properties in Shefford with 100 year plus lease were in the region of £181,600. The average ground rent payable was £55 invoiced every twelve months. The lease ended in 2078. Considering the 52 years remaining we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including legals.
Dr A Lee took over the lease of a ground floor flat in Shefford in April 2010. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Identical properties in Shefford with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced monthly. The lease ended on 26 June 2098. Given that there were 72 years outstanding we calculated the premium to the landlord to extend the lease to be between £11,400 and £13,200 plus professional charges.