The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Shepton Mallet can extend the lease for a further 90 years under Leasehold Reform legislation. Please give careful consideration before delaying your Shepton Mallet lease extension. Postponing that expense now simply escalates the price you will eventually have to pay for a lease extension.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Shepton Mallet can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in this area.
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 procuring Shepton Mallet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Gabriel owned a high value apartment in Shepton Mallet being sold with a lease of a little over 59 years outstanding. Gabriel on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking 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 due on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert advice and secured satisfactory deal informally and sell the property.
Mr and Mrs. J Thompson purchased a newly refurbished flat in Shepton Mallet in February 2000. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar residencies in Shepton Mallet with a long lease were valued around £210,000. The mid-range ground rent payable was £50 invoiced annually. The lease elapsed on 9 September 2105. Considering the 80 years left we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.
In 2009 we were contacted by Ms W Girard who, having was assigned a lease of a studio flat in Shepton Mallet in October 2006. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar properties in Shepton Mallet with a long lease were worth £280,000. The average ground rent payable was £45 invoiced annually. The lease expired in 2094. Considering the 69 years unexpired we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.