Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Shepton Mallet. Clearly, the length of lease remaining shortens over time. This may pass by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Shepton Mallet have the right to extend the lease for a further ninety years under Leasehold Reform legislation. Please give due attention before putting off your Shepton Mallet lease extension. Putting off the cost now likely increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| 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. |
Using our service will provide you increased control over the value of your Shepton Mallet leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Jake, came critically near to the 80-year mark with the lease on his leasehold flat in Shepton Mallet. In buying his home 19 years previously, the lease term was of minimal bearing. by good luck, he noticed he would soon be paying an inflated amount for a lease extension. Jake was able to extend his lease just under the wire in May. Jake and the landlord who owned the flat above in the end settled on sum of £6,000 . If the lease had descended below 80 years, the amount would have become more costly by at least £925.
Mr and Mrs. D Mercier owned a studio apartment in Shepton Mallet in January 2012. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical properties in Shepton Mallet with an extended lease were valued around £290,000. The mid-range ground rent payable was £45 billed every twelve months. The lease ran out on 14 September 2099. Given that there were 73 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
Last Summer we were called by Mr Kyle Bonnet , who owned a purpose-built apartment in Shepton Mallet in May 2002. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Identical homes in Shepton Mallet with a long lease were worth £240,600. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish in 2088. Having 62 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of costs.