Shifnal leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Shifnal enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Shifnal you should check if your lease has between 70 and ninety years left. There are good reasons why a Shifnal flat owner with a lease having around eighty years remaining should take steps to make sure that a lease extension is actioned without delay
Leasehold properties in Shifnal with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors 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 lawyer we work with provide it.
Gabriel was the the leasehold proprietor of a 2 bedroom flat in Shifnal on the market with a lease of a few days over 59 years left. Gabriel on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last Christmas we were called by Dr Sebastian Johnson , who was assigned a lease of a garden apartment in Shifnal in July 1997. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Shifnal with a long lease were valued around £265,000. The mid-range amount of ground rent was £55 collected quarterly. The lease expiry date was on 15 November 2100. Given that there were 74 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.
Ms Rebecca Peterson took over the lease of a studio apartment in Shifnal in February 2004. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable flats in Shifnal with an extended lease were worth £166,400. The mid-range ground rent payable was £60 billed every twelve months. The lease concluded in 2080. Considering the 54 years outstanding we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including expenses.