The re-sale value of a leasehold property in Shelfield depends on how many years the lease has remaining. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be addressed in advance of the eighty year mark. Leasehold Reform legislation entitles Shelfield qualifying lessees to acquire a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Shelfield with over one hundred 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Shelfield,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shelfield valuers.
During the course of the last few months Seth, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Shelfield. In buying his flat two decades ago, the length of the lease was of minimal bearing. Thankfully, he recognised he would soon be paying an escalated premium for a lease extension. Seth extended the lease at the eleventh hour last August. Seth and the landlord in the end agreed on a premium of £6,000 . If he failed to meet the deadline, the price would have gone up by at least £1,000.
Last Spring we were contacted by Dr O André , who completed a one bedroom apartment in Shelfield in May 2005. We are asked if we could approximate the price could be to prolong the lease by 90 years. Similar residencies in Shelfield with a long lease were worth £223,400. The average amount of ground rent was £60 collected quarterly. The lease concluded in 2085. Given that there were 59 years outstanding we approximated the premium to the landlord for the lease extension to be within £27,600 and £31,800 plus expenses.
In 2009 we were phoned by Dr D Moore who, having moved into a ground floor flat in Shelfield in February 2010. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar flats in Shelfield with 100 year plus lease were worth £205,000. The average ground rent payable was £50 invoiced monthly. The lease ran out on 15 May 2105. Considering the 79 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.