Shinfield leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Shinfield residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Shinfield you really ought to see if your lease has between 70 and ninety years left. There are good reasons why a Shinfield leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is put in place without delay
Leasehold residencies in Shinfield with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Shinfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last year Aaron, came precariously close to the eighty-year threshold with the lease on his ground floor apartment in Shinfield. Having purchased his flat twenty years previously, the length of the lease was of no bearing. Luckily, he noticed he needed to take steps soon on a lease extension. Aaron arranged for a lease extension at the eleventh hour last May. Aaron and the landlord eventually agreed on an amount of £5,500 . If he had missed the deadline, the amount would have increased by at least £875.
In 2012 we were called by Mrs T Harris who, having owned a first floor apartment in Shinfield in November 2002. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar premises in Shinfield with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 collected annually. The lease ended in 2099. Having 73 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
In 2012 we were approached by Dr Grace Sharif who, having was assigned a lease of a studio flat in Shinfield in September 1998. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative properties in Shinfield with an extended lease were worth £264,000. The mid-range amount of ground rent was £60 collected every twelve months. The lease came to a finish on 11 March 2079. Given that there were 53 years left we approximated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 not including costs.