Shinfield and Arborfield residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
Leasehold properties in Shinfield and Arborfield with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Shinfield and Arborfield can be a difficult process. We recommend you procure professional help 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 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.
Michael owned a high value apartment in Shinfield and Arborfield on the market with a lease of fraction over fifty eight years outstanding. Michael on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Michael to invoke his statutory right. Michael obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2013 we were phoned by Mrs Niamh Cooper who, having took over the lease of a newly refurbished flat in Shinfield and Arborfield in February 1999. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar properties in Shinfield and Arborfield with an extended lease were in the region of £265,000. The average amount of ground rent was £55 billed every twelve months. The lease ran out on 19 January 2100. Considering the 74 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
Mrs Isabel Khan owned a one bedroom apartment in Shinfield and Arborfield in March 2007. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar residencies in Shinfield and Arborfield with a long lease were valued about £166,400. The average ground rent payable was £60 invoiced annually. The lease termination date was on 27 September 2080. Considering the 54 years remaining we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of fees.