With a long leasehold property in Sherston, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years remaining. Residents in Sherston with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When the lease term has under eighty years left, under the current statute the landlord can calculate and charge a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 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 residence 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Sherston can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
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 a wealth of experience dealing with Sherston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Riley owned a 2 bedroom flat in Sherston being sold with a lease of fraction over 61 years left. Riley informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Riley to invoke his statutory right. Riley obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the flat.
In 2010 we were e-mailed by Mr B Norbert who, having purchased a studio apartment in Sherston in May 2004. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative residencies in Sherston with an extended lease were in the region of £166,400. The average amount of ground rent was £60 collected annually. The lease elapsed on 19 March 2080. Given that there were 54 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 not including expenses.
In 2009 we were e-mailed by Ms Alisha Roux who, having took over the lease of a purpose-built apartment in Sherston in October 1999. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable properties in Sherston with an extended lease were worth £227,800. The mid-range ground rent payable was £45 billed annually. The lease ran out in 2091. Having 65 years remaining we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.