Sherston leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Sherston tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Sherston you would be well advised to see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Sherston leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jack was the the leasehold owner of a 2 bedroom apartment in Sherston being marketed with a lease of a few days over 59 years remaining. Jack on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be due on a lease extension were Jack to invoke his statutory right. Jack procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
In 2009 we were approached by Mr Aiden Fournier who, having purchased a studio apartment in Sherston in March 2002. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparative premises in Sherston with a long lease were valued about £203,200. The mid-range amount of ground rent was £65 collected annually. The lease termination date was on 22 January 2087. Having 61 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of costs.
In 2010 we were contacted by Mr N Wilson who, having owned a one bedroom apartment in Sherston in March 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Comparable residencies in Sherston with a long lease were valued about £260,000. The mid-range ground rent payable was £50 collected per annum. The lease concluded on 8 January 2097. Considering the 71 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.