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. Where you are a leasehold owner in Shipston on Stour you really ought to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on 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 over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Godiva Mortgages | |
| Halifax | |
| Nationwide Building Society |
The conveyancers that we work with procure Shipston on Stour 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.
Nathan owned a conversion flat in Shipston on Stour on the market with a lease of a little over fifty eight years left. Nathan informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Nathan to invoke his statutory right. Nathan procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2012 we were phoned by Mr and Mrs. S Ward who, having moved into a one bedroom apartment in Shipston on Stour in July 2004. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable flats in Shipston on Stour with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease end date was on 4 March 2103. Having 77 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
In 2012 we were phoned by Dr Ben Cooper who, having purchased a one bedroom flat in Shipston on Stour in May 2005. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparative flats in Shipston on Stour with a long lease were worth £260,200. The average amount of ground rent was £65 billed every twelve months. The lease elapsed in 2092. Taking into account 66 years left we calculated the premium to the landlord to extend the lease to be within £16,200 and £18,600 not including fees.