The nearer a residential lease in Shepshed gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Shepshed will meet the qualifying criteria; that being said a conveyancer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Shepshed with more than 100 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 buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Shepshed can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Shepshed lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Benjamin, came very near to the eighty-year threshold with the lease on his two bedroom apartment in Shepshed. Having purchased his flat twenty years previously, the lease term was of little significance. Fortunately, he realised he would soon be paying an escalated premium for Extending the lease. Benjamin was able to extend his lease at the eleventh hour last June. Benjamin and the freeholder via the management company subsequently agreed on an amount of £6,000 . If the lease had slipped below 80 years, the amount would have become more exhorbitant by at least £900.
Last April we were phoned by Mr and Mrs. E Lefèvre , who purchased a first floor apartment in Shepshed in September 2002. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical premises in Shepshed with an extended lease were in the region of £216,000. The average amount of ground rent was £60 invoiced annually. The lease lapsed in 2083. Considering the 58 years unexpired we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of fees.
In 2012 we were phoned by Dr Jude Williams who, having purchased a recently refurbished apartment in Shepshed in October 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable homes in Shepshed with 100 year plus lease were valued around £205,000. The mid-range amount of ground rent was £50 billed monthly. The lease finished on 9 June 2103. Having 78 years remaining we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.