The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Shefford can extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Shefford lease extension. Putting off the costs today simply escalates the premium you will ultimately be required to pay for a lease extension.
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
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.
Following unsuccessful negotiations with the landlord of her ground floor flat in Shefford, Jodie started the lease extension process as the eighty year mark was fast nearing. The transaction was concluded in March 2015. The landlord’s costs were kept to an absolute minimum.
In 2010 we were approached by Mr and Mrs. F Petit who, having completed a one bedroom flat in Shefford in October 1998. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar premises in Shefford with 100 year plus lease were worth £200,000. The average ground rent payable was £50 invoiced annually. The lease concluded in 2102. Taking into account 77 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
Last Spring we were approach by Mr and Mrs. C Rose , who took over the lease of a basement apartment in Shefford in March 2009. The question was if we could estimate the premium could be to prolong the lease by 90 years. Comparative premises in Shefford with an extended lease were worth £265,200. The mid-range ground rent payable was £65 billed quarterly. The lease end date was on 21 August 2091. Having 66 years remaining we calculated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of legals.