Chances are that if you own a flat in Shinfield you actually own a long leasehold interest over your property
Leasehold properties in Shinfield with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
| 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. |
Engaging our service gives you enhanced 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 conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Kai, came very near to the 80-year threshold with the lease on his one bedroom apartment in Shinfield. In buying his flat 18 years previously, the length of the lease was of little bearing. Thankfully, he realised he needed to take action soon on a lease extension. Kai arranged for a lease extension just under the wire last June. Kai and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If he had missed the deadline, the amount would have increased by at least £1,100.
In 2013 we were contacted by Dr M Laurent who, having completed a purpose-built flat in Shinfield in August 2012. The question was if we could estimate the price could be to extend the lease by 90 years. Comparative flats in Shinfield with 100 year plus lease were worth £264,000. The average amount of ground rent was £60 billed monthly. The lease elapsed in 2079. Considering the 53 years left we estimated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 plus costs.
Last month we were e-mailed by Ms Lucy Williams , who purchased a garden apartment in Shinfield in June 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Shinfield with a long lease were worth £225,400. The average amount of ground rent was £45 billed quarterly. The lease ended on 9 January 2090. Taking into account 64 years as a residual term we estimated the premium to the landlord to extend the lease to be between £15,200 and £17,600 plus costs.