Shipston on Stour leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Shipston on Stour residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Shipston on Stour you would be well advised to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| 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 Shipston on Stour,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shipston on Stour valuers.
Jackson was the the leasehold proprietor of a conversion flat in Shipston on Stour on the market with a lease of just over 72 years unexpired. Jackson on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jackson to invoke his statutory right. Jackson procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the property.
Mr Freddie François completed a one bedroom apartment in Shipston on Stour in April 2004. We are asked if we could approximate the premium could be to extend the lease by ninety years. Identical residencies in Shipston on Stour with an extended lease were valued around £280,000. The average ground rent payable was £45 billed monthly. The lease expired on 7 February 2096. Having 70 years remaining we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.
In 2010 we were approached by Dr Dylan Taylor who, having bought a one bedroom apartment in Shipston on Stour in April 2001. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparable premises in Shipston on Stour with a long lease were worth £218,400. The mid-range amount of ground rent was £60 billed quarterly. The lease elapsed on 12 September 2085. Given that there were 59 years remaining we calculated the premium to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of expenses.