Unfortunately that a Shepperton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Shepperton property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term slips below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Shepperton will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Shepperton with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Shepperton,the lease extension solicitors 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 Shepperton valuers.
During the course of the last few months Oscar, started to get near to the eighty-year threshold with the lease on his basement apartment in Shepperton. Having bought his home two decades ago, the lease term was of little interest. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Oscar arranged for a lease extension just under the wire last June. Oscar and the freeholder ultimately settled on a premium of £5,500 . If the lease had dipped lower than eighty years, the price would have escalated by a minimum £925.
Last Winter we were approach by Mr Muhammad Morgan , who took over the lease of a newly refurbished flat in Shepperton in April 2005. We are asked if we could estimate the price could be for a ninety year lease extension. Similar residencies in Shepperton with 100 year plus lease were valued around £245,000. The mid-range amount of ground rent was £50 billed annually. The lease ran out in 2094. Considering the 68 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
An example of a Lease Extension matter before the tribunal for a Shepperton flat is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 82.93 years.