Shipley residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold residencies in Shipley with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Shipley leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Gabriel, started to get close to the eighty-year threshold with the lease on his basement flat in Shipley. In buying his home twenty years ago, the lease term was of no concern. As luck would have it, he realised he needed to take action soon on a lease extension. Gabriel extended the lease just ahead of time last March. Gabriel and the freeholder via the management company subsequently settled on the final figure of £5,500 . If he not met the deadline, the premium would have gone up by at least £1,150.
In 2012 we were approached by Dr W Rodríguez who, having owned a one bedroom apartment in Shipley in August 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Identical premises in Shipley with an extended lease were worth £300,000. The average ground rent payable was £50 invoiced yearly. The lease ran out on 13 June 2102. Given that there were 76 years outstanding we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.
Last Winter we were e-mailed by Dr Ethan Davis , who took over the lease of a basement flat in Shipley in April 2008. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Identical flats in Shipley with an extended lease were valued around £252,800. The mid-range ground rent payable was £65 invoiced monthly. The lease terminated on 17 January 2091. Given that there were 65 years left we approximated the premium to the landlord for the lease extension to be between £17,100 and £19,800 plus legals.