As the the remaining lease term of a Shifnal residential lease lessens so does its value and therefore the value of your property. If the residual term has, beyond one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner as opposed to later. Most flat owners in Shifnal will qualify for this right; nevertheless a conveyancing solicitor will be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Shifnal lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After lengthy negotiations with the landlord of her ground floor apartment in Shifnal, Shannon started the lease extension process as the eighty year deadline was rapidly approaching. The legal work was concluded in November 2009. The landlord’s charges were restricted to less than five hundred GBP.
In 2014 we were phoned by Dr John White who, having completed a one bedroom apartment in Shifnal in September 2000. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Shifnal with an extended lease were in the region of £250,000. The average ground rent payable was £50 collected quarterly. The lease terminated on 23 May 2095. Considering the 69 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
In 2009 we were approached by Mr and Mrs. C Sánchez who, having bought a one bedroom apartment in Shifnal in June 2011. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Shifnal with an extended lease were worth £285,000. The average ground rent payable was £55 collected quarterly. The lease came to a finish in 2106. Considering the 80 years left we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus expenses.