As the length of the unexpired term of a Shirebrook domestic lease diminished so does its value and therefore the value of your property. Where the lease has, more than one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease sooner than later. Most flat owners in Shirebrook will meet the qualifying criteria; that being said a lawyer should be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Shirebrook can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Shirebrook lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dexter owned a high value flat in Shirebrook on the market with a lease of a little over sixty years outstanding. Dexter informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Dexter to exercise his statutory right. Dexter obtained expert legal guidance and secured satisfactory deal informally and sell the flat.
Mr G Williams acquired a studio apartment in Shirebrook in November 1996. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable homes in Shirebrook with an extended lease were valued around £250,400. The mid-range ground rent payable was £65 collected yearly. The lease lapsed on 19 October 2089. Taking into account 64 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of professional charges.
Last month we were approach by Mrs S Rogers , who completed a newly refurbished apartment in Shirebrook in March 2009. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical properties in Shirebrook with an extended lease were valued around £184,000. The average amount of ground rent was £55 collected quarterly. The lease ran out in 2078. Taking into account 53 years outstanding we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus professional charges.