Chances are that where you own a flat in Shinfield you actually own a long leasehold interest over your property
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Halifax | |
| Skipton Building Society | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Shinfield,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shinfield valuers.
Finley was the the leasehold owner of a 2 bedroom flat in Shinfield being marketed with a lease of fraction over sixty years left. Finley on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finley to exercise his statutory right. Finley procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Summer we were called by Ms V Brown , who completed a basement flat in Shinfield in April 2010. The question was if we could approximate the premium would be for a 90 year lease extension. Identical flats in Shinfield with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 billed monthly. The lease finished on 23 November 2098. Considering the 72 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
In 2009 we were called by Mr and Mrs. S Rivera who, having was assigned a lease of a recently refurbished flat in Shinfield in July 2010. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Comparable premises in Shinfield with an extended lease were worth £261,600. The mid-range amount of ground rent was £60 billed per annum. The lease ended in 2078. Considering the 52 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of costs.