With a residential leasehold premises in Sheldon, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are fewer than eighty years remaining. Residents in Sheldon with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. Once a lease has fewer than eighty years outstanding, under the relevant Act the landlord is entitled to calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Lease extensions in Sheldon can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Sheldon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Alex, came precariously close to the eighty-year mark with the lease on his one bedroom apartment in Sheldon. Having purchased his home two decades ago, the lease term was of minimal concern. Thankfully, he noticed he would imminently be paying an inflated amount for a lease extension. Alex arranged for a lease extension just ahead of time in April. Alex and the freeholder eventually settled on the final figure of £5,000 . If the lease had descended to less than 80 years, the premium would have escalated by at least £850.
Last June we were approach by Mr Logan James , who was assigned a lease of a studio apartment in Sheldon in October 1998. We are asked if we could approximate the price could be for a ninety year lease extension. Similar premises in Sheldon with an extended lease were valued around £218,000. The average ground rent payable was £45 collected per annum. The lease terminated on 18 January 2088. Given that there were 63 years unexpired we estimated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus legals.
Dr Leah Bell was assigned a lease of a one bedroom apartment in Sheldon in September 1995. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Sheldon with a long lease were in the region of £265,000. The average amount of ground rent was £50 invoiced yearly. The lease terminated in 2099. Having 74 years unexpired we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.