As the the remaining lease term of a Shildon domestic lease diminished so does its value and therefore the value of your property. If the lease has, beyond 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. The majority of flat owners in Shildon will meet the qualifying criteria; however a lawyer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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 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 dealing with Shildon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Noah owned a studio flat in Shildon on the market with a lease of a few days over 61 years left. Noah informally spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Noah to invoke his statutory right. Noah procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Mr and Mrs. C Mason owned a garden apartment in Shildon in January 2008. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar residencies in Shildon with a long lease were worth £295,000. The mid-range amount of ground rent was £45 billed monthly. The lease ran out on 13 February 2100. Taking into account 74 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.
Last Christmas we were approach by Mr and Mrs. P Parker , who completed a one bedroom flat in Shildon in April 2010. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Shildon with a long lease were in the region of £243,000. The mid-range ground rent payable was £65 collected per annum. The lease ran out in 2089. Considering the 63 years as a residual term we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including fees.