Shirebrook leases on residential deteriorating in value. if your lease has about ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Shirebrook will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain situations you may not be entitled. There are prescribed timetables and steps to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancers that we work with undertake 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 lawyer we work with provide it.
After unsuccessful discussions with the landlord of her purpose-built flat in Shirebrook, Natasha initiated the lease extension process just as her lease was approaching the crucial eighty-year mark. The transaction completed in October 2014. The landlord’s charges were negotiated to below 650 pounds.
In 2011 we were called by Dr Jackson Ramírez who, having purchased a ground floor flat in Shirebrook in October 2010. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Similar residencies in Shirebrook with 100 year plus lease were in the region of £208,600. The average ground rent payable was £60 billed quarterly. The lease finished in 2083. Considering the 57 years remaining we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including fees.
In 2009 we were approached by Mr James Laurent who, having purchased a one bedroom apartment in Shirebrook in March 2005. The question was if we could approximate the premium could be for a ninety year lease extension. Comparable premises in Shirebrook with 100 year plus lease were worth £200,000. The average ground rent payable was £50 billed monthly. The lease concluded on 19 October 2103. Considering the 77 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.