Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Shenstone. Inevitably, the length of lease remaining shortens as time goes by. This is often ignored and only becomes a problem when the property needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Shenstone have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give careful deliberation before delaying your Shenstone lease extension. Putting off the cost now likely increases the price you will ultimately incur to extend your lease
Leasehold residencies in Shenstone with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Shenstone can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 dealing with Shenstone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago William, came precariously close to the eighty-year threshold with the lease on his purpose- built apartment in Shenstone. In buying his flat two decades ago, the length of the lease was of little relevance. Thankfully, he noticed he would soon be paying way over the odds for a lease extension. William extended the lease just in the nick of time last May. William and the landlord eventually agreed on the final figure of £5,000 . If he not met the deadline, the premium would have escalated by a minimum £1,150.
In 2014 we were e-mailed by Mrs B Morgan who, having took over the lease of a first floor flat in Shenstone in April 2001. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparative homes in Shenstone with a long lease were valued around £201,200. The average ground rent payable was £55 billed every twelve months. The lease elapsed on 6 January 2081. Considering the 56 years left we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus costs.
In 2013 we were contacted by Dr C Khan who, having acquired a ground floor apartment in Shenstone in November 2012. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar flats in Shenstone with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 billed yearly. The lease terminated on 21 September 2101. Considering the 76 years left we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.