As the length of the unexpired term of a Shildon domestic lease decreases so does its value and therefore the value of your property. If the lease has, in excess of 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years unexpired 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 extend the lease sooner as opposed to later. The majority of flat owners in Shildon will meet the qualifying criteria; that being said a lawyer will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | 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. |
Using our service gives you increased control over the value of your Shildon leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Kai, started to get near to the eighty-year threshold with the lease on his first floor apartment in Shildon. Having bought his flat twenty years ago, the lease term was of no interest. Luckily, he noticed he would soon be paying an inflated amount for a lease extension. Kai arranged for a lease extension just under the wire in July. Kai and the freeholder via the managing agents eventually agreed on the final figure of £5,000 . If he failed to meet the deadline, the amount would have escalated by at least £1,125.
Last Summer we were contacted by Ms W Petit , who acquired a purpose-built flat in Shildon in April 2006. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Similar premises in Shildon with a long lease were valued about £191,400. The mid-range ground rent payable was £55 billed annually. The lease ended on 9 August 2080. Taking into account 54 years outstanding we estimated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of legals.
In 2009 we were approached by Mr Stanley Bonnet who, having took over the lease of a newly refurbished apartment in Shildon in May 2002. The question was if we could estimate the price would be to extend the lease by ninety years. Identical homes in Shildon with a long lease were valued about £295,000. The mid-range ground rent payable was £45 collected quarterly. The lease concluded on 15 March 2100. Given that there were 74 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.