There is no doubt about it a leasehold property in Shirebrook is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Shirebrook will qualify for this right; that being said a conveyancing solicitor can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Shirebrook 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 conveyancing solicitor we work with provide it.
Half a year ago Connor, started to get near to the 80-year mark with the lease on his purpose- built apartment in Shirebrook. Having bought his property two decades ago, the unexpired term was of no relevance. Luckily, he noticed he needed to take action soon on a lease extension. Connor was able to extend his lease at the eleventh hour in January. Connor and the freeholder subsequently agreed on the final figure of £6,000 . If he had missed the deadline, the price would have increased by a minimum £850.
In 2011 we were phoned by Mr and Mrs. F Gómez who, having took over the lease of a newly refurbished flat in Shirebrook in July 2002. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparative properties in Shirebrook with a long lease were valued around £216,000. The average ground rent payable was £60 billed annually. The lease termination date was on 28 January 2083. Given that there were 58 years left we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of costs.
Last Autumn we were contacted by Mr and Mrs. I Martin , who moved into a studio flat in Shirebrook in June 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Shirebrook with an extended lease were valued about £205,000. The average ground rent payable was £50 collected quarterly. The lease elapsed in 2103. Given that there were 78 years unexpired we approximated the premium to the landlord to extend the lease to be within £7,600 and £8,800 not including costs.