Shipston on Stour leases on domestic deteriorating in value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay 50% 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 to the property. Flat owners in Shipston on Stour will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Coventry Building Society | 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 | 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Shipston on Stour,the lease extension lawyers that we work with will always be happy 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.
Subsequent to unsuccessful correspondence with the landlord of her studio apartment in Shipston on Stour, Jennifer started the lease extension process just as the lease was coming close to the all-important eighty-year mark. The legal work completed in March 2011. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were approached by Dr Eleanor Nguyen who, having owned a newly refurbished apartment in Shipston on Stour in July 2008. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative properties in Shipston on Stour with an extended lease were worth £295,000. The average amount of ground rent was £45 invoiced quarterly. The lease finished in 2100. Having 75 years as a residual term we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.
In 2013 we were called by Mr W Moore who, having took over the lease of a one bedroom apartment in Shipston on Stour in October 2010. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparative residencies in Shipston on Stour with an extended lease were worth £250,400. The average amount of ground rent was £65 invoiced yearly. The lease came to a finish in 2089. Taking into account 64 years left we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of fees.