As the the remaining lease term of a Shinfield and Arborfield domestic lease lessens so does its value and therefore the value of your property. If the residual term has, over 125 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner than later. Most flat owners in Shinfield and Arborfield will qualify for this right; however a conveyancing solicitor should be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Shinfield and Arborfield with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
Lease extensions in Shinfield and Arborfield can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 in-depth market knowledge procuring Shinfield and Arborfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy negotiations with the freeholder of her garden flat in Shinfield and Arborfield, Lucy started the lease extension process as the 80 year deadline was rapidly nearing. The legal work was finalised in June 2006. The landlord’s fees were kept to an absolute minimum.
In 2011 we were approached by Mr and Mrs. C Bell who, having moved into a purpose-built apartment in Shinfield and Arborfield in April 2009. The question was if we could estimate the price would be for a 90 year lease extension. Identical residencies in Shinfield and Arborfield with 100 year plus lease were worth £173,800. The average ground rent payable was £60 billed monthly. The lease lapsed on 7 June 2081. Considering the 55 years remaining we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.
In 2011 we were e-mailed by Mrs Ella James who, having took over the lease of a newly refurbished flat in Shinfield and Arborfield in March 2004. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative properties in Shinfield and Arborfield with a long lease were in the region of £235,200. The average amount of ground rent was £45 billed per annum. The lease ended in 2092. Given that there were 66 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.