Shildon leases on residential properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Shildon will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not be entitled. There are prescribed timetables and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Shildon can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 Shildon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Max, came seriously close to the 80-year threshold with the lease on his studio flat in Shildon. In buying his home twenty years previously, the unexpired term was of no significance. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Max arranged for a lease extension just in the nick of time last January. Max and the freeholder via the managing agents eventually settled on sum of £5,000 . If he not met the deadline, the amount would have increased by at least £975.
Last Winter we were approach by Mr Harrison Green , who completed a ground floor apartment in Shildon in June 2010. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative residencies in Shildon with a long lease were worth £206,200. The average amount of ground rent was £55 billed monthly. The lease finished in 2082. Given that there were 56 years left we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus legals.
Last Christmas we were approach by Ms A King , who acquired a one bedroom flat in Shildon in January 1997. The question was if we could estimate the price would likely be to extend the lease by a further 90 years. Identical flats in Shildon with a long lease were valued about £300,000. The average amount of ground rent was £50 invoiced quarterly. The lease lapsed in 2102. Taking into account 76 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.