The only way is down when it comes to Shinfield lease terms. Shinfield flats that have a residual term fewer than eighty years will drop in value at a rapid rate, and the cost of extending your lease will go up.
Leasehold premises in Shinfield with in excess of 100 years left 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Shinfield can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Shinfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Michael was the the leasehold proprietor of a high value flat in Shinfield on the market with a lease of a few days over 72 years outstanding. Michael on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Michael to exercise his statutory right. Michael obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2009 we were e-mailed by Dr Liam Smith who, having completed a garden flat in Shinfield in July 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Identical residencies in Shinfield with 100 year plus lease were valued about £280,000. The average ground rent payable was £55 billed annually. The lease terminated on 4 November 2103. Having 79 years left we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.
In 2013 we were approached by Mr Jason Smith who, having purchased a basement flat in Shinfield in March 1995. The question was if we could estimate the price would be for a 90 year extension to my lease. Comparable properties in Shinfield with 100 year plus lease were worth £191,000. The average ground rent payable was £65 invoiced every twelve months. The lease expired in 2082. Taking into account 58 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 not including expenses.