Shefford leases on residential deteriorating in value. if your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Shefford will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain situations you may not qualify. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Shefford with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Shefford,the lease extension lawyers that we work with will always be prepared 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.
Omar was the the leasehold owner of a studio apartment in Shefford on the market with a lease of a little over 59 years remaining. Omar informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Omar to exercise his statutory right. Omar obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last month we were e-mailed by Mr Milo Simon , who purchased a garden apartment in Shefford in February 2006. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparable flats in Shefford with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 collected quarterly. The lease concluded on 2 September 2101. Given that there were 75 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
Mr and Mrs. G Martin owned a studio apartment in Shefford in January 1999. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Shefford with a long lease were in the region of £250,400. The mid-range amount of ground rent was £65 collected quarterly. The lease ran out in 2090. Having 64 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 plus fees.