The market value of a leasehold property in Shinfield is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that formalities can be concluded prior to the 80 year cut off point. Current legislation entitles Shinfield qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Shinfield,the lease extension solicitors 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 valuers.
Trailing unsuccessful correspondence with the freeholder of her purpose-built apartment in Shinfield, Jessica initiated the lease extension process as the eighty year mark was fast approaching. The legal work was concluded in July 2014. The landlord’s charges were kept to an absolute minimum.
Mr Blake Sharif moved into a garden apartment in Shinfield in January 1999. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative homes in Shinfield with an extended lease were worth £280,000. The average ground rent payable was £55 billed quarterly. The lease elapsed on 23 August 2103. Having 77 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.
Mrs R Khan acquired a first floor apartment in Shinfield in July 2004. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Shinfield with an extended lease were worth £183,600. The mid-range ground rent payable was £65 billed yearly. The lease came to a finish in 2083. Given that there were 57 years left we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus costs.