Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Shillington. Inevitably, the length of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Shillington have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. Do give due deliberation before delaying your Shillington lease extension. Holding off the cost now simply increases the price you will eventually incur for a lease extension
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors 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 conveyancer we work with provide it.
In the wake of eight months of unsuccessful negotiations with the landlord of her two bedroom apartment in Shillington, Kirsty initiated the lease extension process as the eighty year deadline was quickly advancing. The lease extension was concluded in November 2014. The freeholder’s costs were negotiated to about 450 pounds.
Ms Yasmin Torres moved into a newly refurbished flat in Shillington in August 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar flats in Shillington with a long lease were valued around £250,400. The average amount of ground rent was £65 billed every twelve months. The lease ended in 2090. Taking into account 64 years unexpired we approximated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 plus costs.
Last Spring we were called by Dr P Wright , who bought a studio apartment in Shillington in October 2011. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative residencies in Shillington with a long lease were valued around £189,000. The mid-range ground rent payable was £55 billed per annum. The lease came to a finish in 2079. Given that there were 53 years unexpired we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of costs.