Chances are that if you own a flat in Shepshed you actually own a long leasehold interest over your property
Leasehold residencies in Shepshed with more than one hundred years left 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Shepshed,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 Shepshed valuers.
Oscar was the the leasehold proprietor of a high value flat in Shepshed on the market with a lease of fraction over sixty years outstanding. Oscar informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Oscar to invoke his statutory right. Oscar procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. W Morgan was assigned a lease of a one bedroom apartment in Shepshed in January 2009. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable premises in Shepshed with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 collected per annum. The lease concluded in 2099. Taking into account 74 years remaining we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.
In 2013 we were called by Dr J Rodríguez who, having was assigned a lease of a studio apartment in Shepshed in May 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Shepshed with an extended lease were in the region of £243,000. The average amount of ground rent was £65 billed quarterly. The lease finished in 2088. Given that there were 63 years remaining we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus expenses.