Shinfield leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Shinfield will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Shinfield with in excess of 100 years remaining on the lease are sometimes regarded as a ‘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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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; |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Shinfield,the lease extension solicitors 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.
After lengthy discussions with the freeholder of her first floor flat in Shinfield, Megan initiated the lease extension process as the eighty year mark was fast advancing. The transaction was finalised in June 2010. The landlord’s charges were restricted to slightly above 550 GBP.
Last Spring we were called by Mr and Mrs. K Howard , who completed a one bedroom flat in Shinfield in June 1995. We are asked if we could estimate the premium could be to extend the lease by an additional years. Similar properties in Shinfield with a long lease were in the region of £208,200. The mid-range amount of ground rent was £65 billed per annum. The lease elapsed on 15 June 2087. Taking into account 61 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of fees.
Mr and Mrs. V Hernández moved into a garden apartment in Shinfield in September 2000. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative premises in Shinfield with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 collected every twelve months. The lease ended on 22 April 2098. Taking into account 72 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.