Shelfield leases on domestic deteriorating in value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Shelfield will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain circumstances you may not qualify. There are also strict timetables and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Shelfield with over one hundred years outstanding 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date 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. |
| 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. |
Lease extensions in Shelfield can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor 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 Shelfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy negotiations with the landlord of her two bedroom flat in Shelfield, Rebecca started the lease extension process as the eighty year threshold was rapidly nearing. The lease extension was concluded in August 2006. The landlord’s costs were kept to an absolute minimum.
Last year we were approach by Mr and Mrs. A Anderson , who was assigned a lease of a studio flat in Shelfield in April 2009. The dilemma was if we could approximate the price would be for a 90 year lease extension. Identical premises in Shelfield with a long lease were in the region of £250,400. The average amount of ground rent was £65 collected quarterly. The lease ran out in 2089. Taking into account 64 years outstanding we estimated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of fees.
Last Summer we were contacted by Dr P Williams , who was assigned a lease of a studio apartment in Shelfield in May 2001. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparative premises in Shelfield with 100 year plus lease were worth £189,000. The average ground rent payable was £55 collected monthly. The lease termination date was in 2078. Considering the 53 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus costs.