There is no doubt about it a leasehold property in Shinfield is a wasting asset as a result of the shortening lease. If the residual term has, over 100 years remaining then this decrease may be of little impact however there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Shinfield will meet the qualifying criteria; however a conveyancing solicitor 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 owned the property for less than two years.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Shinfield leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Aiden, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Shinfield. Having purchased his property 19 years ago, the length of the lease was of minimal significance. by good luck, he noticed he would soon be paying an escalated premium for a lease extension. Aiden was able to extend his lease just under the wire in June. Aiden and the landlord in the end settled on a premium of £6,000 . If he had missed the deadline, the price would have gone up by at least £1,100.
Mr E David completed a one bedroom apartment in Shinfield in May 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Similar residencies in Shinfield with an extended lease were valued around £250,000. The mid-range ground rent payable was £50 billed per annum. The lease expired in 2095. Considering the 69 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
Mr and Mrs. B Johnson was assigned a lease of a one bedroom apartment in Shinfield in February 2011. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Similar properties in Shinfield with an extended lease were valued about £290,000. The average ground rent payable was £60 invoiced every twelve months. The lease expired in 2106. Having 80 years left we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.