As the the remaining lease term of a Shipston on Stour domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, more than one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Shipston on Stour will qualify for this right; nevertheless a lawyer should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Shipston on Stour with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| TSB |
Irrespective of whether you are a tenant or a freeholder in Shipston on Stour,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shipston on Stour valuers.
Tyler was the the leasehold proprietor of a conversion apartment in Shipston on Stour on the market with a lease of a little over fifty eight years outstanding. Tyler informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Tyler to exercise his statutory right. Tyler procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Mr Sebastian Stewart acquired a recently refurbished flat in Shipston on Stour in July 2009. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar homes in Shipston on Stour with an extended lease were worth £216,000. The mid-range ground rent payable was £60 invoiced annually. The lease ran out in 2084. Given that there were 58 years as a residual term we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus costs.
Last Autumn we were contacted by Mr Zachary Green , who purchased a purpose-built flat in Shipston on Stour in November 2003. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparative properties in Shipston on Stour with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 billed annually. The lease ended on 25 August 2104. Considering the 78 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.