Shifnal leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the existing lease drops below 80 years - otherwise a higher amount will be payable. Flat owners in Shifnal will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some circumstances you may not qualify. There are also strict deadlines and steps to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
| Yorkshire 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. |
Lease extensions in Shifnal can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 a wealth of experience procuring Shifnal lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the landlord of her two bedroom flat in Shifnal, Amber initiated the lease extension process just as her lease was nearing the crucial eighty-year threshold. The legal work completed in January 2015. The landlord’s charges were kept to an absolute minimum.
Last May we were called by Mrs C Parker , who moved into a basement apartment in Shifnal in April 1995. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparable premises in Shifnal with an extended lease were valued around £246,800. The average ground rent payable was £60 billed every twelve months. The lease terminated in 2076. Having 50 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of costs.
Last Christmas we were contacted by Dr Noah Hill , who took over the lease of a newly refurbished apartment in Shifnal in May 2009. The question was if we could approximate the premium could be for a ninety year lease extension. Similar premises in Shifnal with a long lease were in the region of £208,200. The average amount of ground rent was £65 billed monthly. The lease came to a finish on 23 August 2087. Considering the 61 years as a residual term we calculated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including expenses.