The nearer a residential lease in Shinfield nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than 125 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending without delay. The majority of flat owners in Shinfield will qualify for this right; however a conveyancer will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| 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 will provide you increased control over the value of your Shinfield leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Dylan, came perilously close to the 80-year mark with the lease on his first floor apartment in Shinfield. Having purchased his property 19 years previously, the unexpired term was of little importance. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Dylan arranged for a lease extension at the eleventh hour last September. Dylan and the landlord who owned the flat above in the end settled on sum of £5,000 . If the lease had descended to less than 80 years, the premium would have increased by a minimum £875.
Mr and Mrs. A Gray was assigned a lease of a one bedroom flat in Shinfield in May 2011. The question was if we could approximate the premium would be for a ninety year lease extension. Similar premises in Shinfield with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 billed quarterly. The lease lapsed in 2084. Having 59 years remaining we approximated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus expenses.
In 2011 we were phoned by Dr J Bennett who, having acquired a one bedroom apartment in Shinfield in October 2008. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative residencies in Shinfield with 100 year plus lease were valued around £255,000. The mid-range ground rent payable was £50 invoiced per annum. The lease expired on 13 October 2095. Taking into account 70 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.