Shillington leases on residential deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Shillington will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not be entitled. There are also strict deadlines and steps to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| 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. |
| 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. |
The lawyers that we work with handle Shillington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Harvey owned a conversion apartment in Shillington being marketed with a lease of a little over 61 years remaining. Harvey informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Harvey to invoke his statutory right. Harvey procured expert advice and secured satisfactory resolution without going to tribunal and sell the property.
In 2014 we were contacted by Mr J Martinez who, having owned a basement apartment in Shillington in January 2004. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative residencies in Shillington with an extended lease were worth £275,000. The mid-range ground rent payable was £65 collected yearly. The lease came to a finish in 2094. Considering the 68 years remaining we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
In 2009 we were called by Mr and Mrs. I Harris who, having acquired a basement flat in Shillington in May 1998. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable premises in Shillington with 100 year plus lease were worth £213,600. The mid-range amount of ground rent was £60 invoiced annually. The lease termination date was in 2083. Having 57 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including expenses.