Stop! Your Lease Extension in Shinfield Could Be FREE

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Many leaseholders in Shinfield are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Shinfield has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Top reasons for Shinfield lease extension

Top reasons for lease extension now:

A Shinfield leasehold property depreciates with the years remaining on the lease.

Shinfield leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Shinfield residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Shinfield you should see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

Shinfield property with a lease extension is almost the same value as a freehold

Leasehold premises in Shinfield with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.

Banks and Building Societies may not loan monies on a short lease

The propensity since over the last decade has been for banks to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by lenders has increased. Historically lenders were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

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;
Birmingham Midshires 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.
Halifax Minimum 70 years from the date of the mortgage.

Why use us for your lease extension in Shinfield?

Irrespective of whether you are a tenant or a freeholder in Shinfield,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shinfield valuers.

Shinfield Lease Extension Example Cases:

Mason, Shinfield, Berkshire

Last October Mason, came critically close to the eighty-year threshold with the lease on his basement flat in Shinfield. Having purchased his flat two decades ago, the lease term was of no significance. Luckily, he realised he would imminently be paying way over the odds for a lease extension. Mason arranged for a lease extension just under the wire last June. Mason and the freeholder via the management company in the end agreed on an amount of £6,000 . If the lease had descended lower than 80 years, the price would have gone up by at least £1,125.

Shinfield case:

In 2014 we were e-mailed by Dr R Clark who, having acquired a garden flat in Shinfield in January 2000. The dilemma was if we could approximate the price could be to extend the lease by ninety years. Identical residencies in Shinfield with an extended lease were valued about £183,600. The average amount of ground rent was £65 invoiced per annum. The lease finished on 27 February 2083. Considering the 57 years remaining we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus professional charges.

Shinfield case:

In 2009 we were approached by Ms R Vincent who, having took over the lease of a garden flat in Shinfield in September 1995. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparative flats in Shinfield with a long lease were worth £245,000. The mid-range amount of ground rent was £50 collected quarterly. The lease terminated in 2094. Taking into account 68 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.