The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Shenstone may extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Shenstone lease extension. Putting off the costs today simply increases the price you will eventually be required to pay for a lease extension.
Leasehold premises in Shenstone with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Shenstone lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Following protracted correspondence with the freeholder of her garden flat in Shenstone, Megan started the lease extension process just as the lease was approaching the crucial eighty-year threshold. The legal work completed in May 2007. The freeholder’s charges were restricted to below six hundred GBP.
Last Spring we were approach by Mr and Mrs. R Hill , who moved into a studio flat in Shenstone in March 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Similar properties in Shenstone with a long lease were in the region of £260,200. The mid-range amount of ground rent was £65 invoiced per annum. The lease came to a finish in 2092. Taking into account 66 years as a residual term we approximated the premium to the landlord to extend the lease to be within £16,200 and £18,600 plus fees.
In 2010 we were called by Mr Felix Norbert who, having completed a purpose-built flat in Shenstone in August 1999. The question was if we could approximate the price would be for a ninety year extension to my lease. Identical residencies in Shenstone with 100 year plus lease were valued around £198,800. The mid-range amount of ground rent was £55 billed monthly. The lease lapsed in 2081. Considering the 55 years left we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including legals.