Shefford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Shefford tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Shefford you really ought to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
Using our service gives you increased 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 want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the landlord of her leasehold apartment in Shefford, Alisha initiated the lease extension process as the eighty year mark was fast advancing. The lease extension completed in February 2010. The freeholder’s costs were negotiated to approximately 600 pounds.
Last Winter we were called by Mrs Poppy Clark , who moved into a first floor flat in Shefford in October 2000. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Shefford with a long lease were valued around £210,000. The average amount of ground rent was £50 collected annually. The lease concluded in 2106. Having 80 years outstanding we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.
In 2014 we were approached by Mr and Mrs. D Murphy who, having was assigned a lease of a one bedroom flat in Shefford in March 2011. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Shefford with a long lease were in the region of £280,000. The average amount of ground rent was £45 invoiced yearly. The lease finished on 15 July 2095. Considering the 69 years as a residual term we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.