The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Shifnal have the legal entitlement to extend the lease for a further 90 years under Leasehold Reform legislation. Please think carefully before delaying your Shifnal lease extension. Postponing the costs now simply escalates the amount you will ultimately be required to pay for a lease extension.
Leasehold residencies in Shifnal with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Shifnal,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shifnal valuers.
During the course of the last few months Matthew, came precariously close to the eighty-year mark with the lease on his studio flat in Shifnal. In buying his home two decades ago, the length of the lease was of little bearing. Fortunately, he became aware that he needed to take action soon on Extending the lease. Matthew extended the lease at the eleventh hour in August. Matthew and the freeholder in the end settled on sum of £5,000 . If he failed to meet the deadline, the sum would have escalated by at least £850.
Dr V Mason took over the lease of a basement flat in Shifnal in March 2001. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Shifnal with a long lease were valued around £210,600. The mid-range ground rent payable was £45 billed monthly. The lease end date was on 25 October 2088. Taking into account 62 years unexpired we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including fees.
Mr Y Lefebvre took over the lease of a ground floor apartment in Shifnal in May 2006. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Similar residencies in Shifnal with a long lease were worth £265,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease concluded in 2099. Given that there were 73 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.