Shepton Mallet residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
Leasehold premises in Shepton Mallet with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Theo owned a high value apartment in Shepton Mallet on the market with a lease of a little over sixty years unexpired. Theo informally spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Theo to invoke his statutory right. Theo obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. S Hall purchased a one bedroom apartment in Shepton Mallet in May 2005. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable residencies in Shepton Mallet with 100 year plus lease were in the region of £265,200. The mid-range amount of ground rent was £65 billed yearly. The lease came to a finish in 2092. Considering the 66 years remaining we estimated the premium to the landlord for the lease extension to be between £15,200 and £17,600 plus legals.
In 2011 we were approached by Mr and Mrs. D Lee who, having completed a one bedroom apartment in Shepton Mallet in September 1998. We are asked if we could approximate the price could be to extend the lease by an additional years. Similar properties in Shepton Mallet with an extended lease were worth £198,800. The average ground rent payable was £55 collected yearly. The lease ran out in 2081. Considering the 55 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 not including legals.