The only way is down when it comes to Shildon lease terms. Shildon properties that have a residual term lower than 80 years will de-escalate in market price even faster, and the cost to extend your lease will go up.
Leasehold residencies in Shildon with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Lease extensions in Shildon can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in lease extensions.
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.
Half a year ago Max, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Shildon. In buying his property 18 years ago, the length of the lease was of little interest. by good luck, he became aware that he would soon be paying an escalated premium for a lease extension. Max was able to extend his lease just in the nick of time in September. Max and the landlord in the end settled on the final figure of £5,000 . If the lease had dipped to less than 80 years, the premium would have escalated by at least £1,050.
In 2013 we were contacted by Mr and Mrs. O Lewis who, having completed a one bedroom flat in Shildon in July 1995. The dilemma was if we could approximate the premium could be to prolong the lease by 90 years. Comparative flats in Shildon with a long lease were worth £250,400. The average amount of ground rent was £65 invoiced monthly. The lease terminated on 26 November 2090. Considering the 64 years outstanding we calculated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of professional charges.
Mr and Mrs. P Brown acquired a newly refurbished apartment in Shildon in March 2007. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparative properties in Shildon with a long lease were worth £189,000. The average ground rent payable was £55 invoiced quarterly. The lease lapsed on 11 August 2079. Given that there were 53 years left we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including expenses.