Unfortunately that a Shinfield residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Shinfield property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining falls under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Shinfield will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Shinfield can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer 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.
18 months ago Daniel, came perilously close to the eighty-year threshold with the lease on his one bedroom apartment in Shinfield. In buying his property twenty years ago, the lease term was of no interest. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Daniel was able to extend his lease at the eleventh hour in September. Daniel and the freeholder via the management company eventually settled on sum of £5,500 . If the lease had descended lower than 80 years, the price would have become more exhorbitant by at least £1,050.
Dr Harry Vincent owned a one bedroom apartment in Shinfield in July 2004. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical homes in Shinfield with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 invoiced monthly. The lease finished in 2096. Having 72 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Dr G Walker bought a basement flat in Shinfield in January 2009. The question was if we could approximate the price could be for a ninety year extension to my lease. Similar premises in Shinfield with 100 year plus lease were valued around £256,600. The mid-range ground rent payable was £60 collected quarterly. The lease came to a finish on 13 February 2076. Considering the 52 years remaining we approximated the premium to the freeholder for the lease extension to be between £41,800 and £48,400 not including expenses.