Chances are that where you own a flat in Sheldon you actually own a long leasehold interest over your property
Leasehold properties in Sheldon with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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. |
| 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. |
Lease extensions in Sheldon can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience 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.
Jonathan was the the leasehold owner of a conversion apartment in Sheldon being marketed with a lease of just over 72 years outstanding. Jonathan informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2012 we were called by Mr William Davis who, having completed a purpose-built flat in Sheldon in March 2006. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparative properties in Sheldon with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 billed annually. The lease ended in 2100. Having 75 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
In 2013 we were phoned by Mr and Mrs. P Thompson who, having took over the lease of a one bedroom apartment in Sheldon in September 2011. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Identical homes in Sheldon with a long lease were in the region of £168,800. The average amount of ground rent was £60 collected per annum. The lease finished on 16 November 2080. Considering the 55 years left we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus fees.