There is no doubt about it a leasehold flat or house in Shinfield is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond one hundred years to run then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Most flat owners in Shinfield will meet the qualifying criteria; nevertheless a conveyancer will be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Shinfield with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Engaging our service will provide you better control over the value of your Shinfield leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October George, came perilously close to the eighty-year mark with the lease on his purpose- built flat in Shinfield. In buying his flat two decades ago, the lease term was of minimal significance. Thankfully, he became aware that he would soon be paying an escalated premium for Extending the lease. George arranged for a lease extension just under the wire in August. George and the landlord who owned the flat above in the end agreed on an amount of £5,000 . If he had missed the deadline, the amount would have escalated by a minimum £1,125.
In 2012 we were approached by Mr I Bernard who, having bought a one bedroom apartment in Shinfield in August 2002. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative homes in Shinfield with a long lease were in the region of £176,200. The average ground rent payable was £65 billed every twelve months. The lease came to a finish on 9 February 2082. Having 56 years remaining we estimated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 plus professional charges.
Last Autumn we were phoned by Mr Kyle Davies , who completed a purpose-built flat in Shinfield in September 2007. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar flats in Shinfield with an extended lease were in the region of £242,600. The average amount of ground rent was £45 invoiced every twelve months. The lease terminated in 2093. Considering the 67 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus fees.