There is no doubt about it a leasehold property in Shinfield and Arborfield is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 100 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Many flat owners in Shinfield and Arborfield will qualify for this right; nevertheless a conveyancer should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies 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 home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Shinfield and Arborfield,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shinfield and Arborfield valuers.
Off the back of unsuccessful discussions with the landlord of her leasehold apartment in Shinfield and Arborfield, Jodie initiated the lease extension process as the eighty year mark was swiftly coming. The lease extension was concluded in March 2008. The freeholder’s costs were restricted to a tad over 650 pounds.
In 2010 we were called by Dr Joseph Rodríguez who, having took over the lease of a ground floor apartment in Shinfield and Arborfield in January 1999. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Identical properties in Shinfield and Arborfield with 100 year plus lease were in the region of £264,000. The average ground rent payable was £60 billed annually. The lease expired in 2078. Taking into account 53 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of expenses.
Mrs G Gray bought a one bedroom flat in Shinfield and Arborfield in January 2012. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative flats in Shinfield and Arborfield with an extended lease were in the region of £225,400. The mid-range ground rent payable was £45 billed quarterly. The lease end date was on 26 July 2089. Having 64 years left we estimated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of costs.