Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Shenley. Inevitably, the term of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the residence has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in Shenley have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. Do give due deliberation before putting off your Shenley lease extension. Putting off the cost now only increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Shenley with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Shenley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shenley valuers.
Kai owned a studio apartment in Shenley being sold with a lease of a little over fifty eight years outstanding. Kai on an informal basis approached his landlord a well known Bristol-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 initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kai to exercise his statutory right. Kai obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2014 we were phoned by Mr A Peterson who, having moved into a purpose-built apartment in Shenley in June 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Shenley with a long lease were worth £265,000. The mid-range amount of ground rent was £50 collected per annum. The lease came to a finish on 13 March 2100. Taking into account 74 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Shenley premises is Ground Floor Maisonette 17 Milton Road in January 2014. The Tribunal determined the premium payable by the Applicant to the should be £13,299 This case affected 1 flat. The number of years remaining on the existing lease(s) was 71.73 years.