Shepton Mallet leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Shepton Mallet tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Shepton Mallet you would be well advised to check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Shepton Mallet flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Shepton Mallet leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Luke, started to get close to the 80-year mark with the lease on his one bedroom flat in Shepton Mallet. Having purchased his flat 18 years ago, the unexpired term was of no bearing. Thankfully, he became aware that he needed to take action soon on Extending the lease. Luke extended the lease just ahead of time last April. Luke and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If he had missed the deadline, the figure would have become more exhorbitant by at least £1,150.
Last month we were phoned by Mr and Mrs. G Lewis , who owned a purpose-built flat in Shepton Mallet in August 2003. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Identical flats in Shepton Mallet with a long lease were in the region of £285,000. The average ground rent payable was £45 collected yearly. The lease lapsed in 2097. Given that there were 71 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.
In 2014 we were e-mailed by Ms L Walker who, having was assigned a lease of a studio flat in Shepton Mallet in April 2010. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparative homes in Shepton Mallet with a long lease were worth £230,800. The average amount of ground rent was £60 collected per annum. The lease terminated on 12 February 2086. Having 60 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £24,700 and £28,600 exclusive of professional charges.