Shinfield leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Shinfield will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain circumstances you may not qualify. There are also strict timetables and steps to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Shinfield with more than 100 years remaining 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 upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 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.
Tommy was the the leasehold proprietor of a 2 bedroom apartment in Shinfield on the market with a lease of just over 72 years remaining. Tommy informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert advice and secured an acceptable deal informally and sell the flat.
Last year we were approach by Dr Gabriel Thomas , who owned a purpose-built apartment in Shinfield in August 2011. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparative properties in Shinfield with a long lease were valued about £275,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease expired on 26 September 2101. Considering the 76 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
In 2009 we were contacted by Mr and Mrs. V Young who, having was assigned a lease of a studio flat in Shinfield in May 2000. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Similar properties in Shinfield with a long lease were in the region of £176,200. The average amount of ground rent was £65 invoiced every twelve months. The lease terminated on 16 June 2081. Having 56 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 not including fees.