The only way is down when it comes to Shinfield and Arborfield lease terms. Shinfield and Arborfield flats that have a remaining term fewer than 80 years will de-escalate in value even faster, and the cost to extend your lease will increase.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Shinfield and Arborfield,the lease extension solicitors that we work with will always be willing 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.
Jack owned a studio apartment in Shinfield and Arborfield on the market with a lease of just over 59 years outstanding. Jack on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Jack to invoke his statutory right. Jack obtained expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Dr M Lefèvre purchased a purpose-built flat in Shinfield and Arborfield in March 2005. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparable flats in Shinfield and Arborfield with an extended lease were in the region of £200,800. The mid-range ground rent payable was £65 billed per annum. The lease terminated on 10 March 2085. Considering the 60 years left we calculated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 plus fees.
Last month we were phoned by Mr and Mrs. I Adams , who owned a studio flat in Shinfield and Arborfield in January 1998. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical homes in Shinfield and Arborfield with a long lease were valued about £255,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease expired on 25 May 2096. Given that there were 71 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.