Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Shirenewton. Clearly, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the property has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Shirenewton have the legal entitlement to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Please give due attention before putting off your Shirenewton lease extension. Putting off the cost now likely increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Shirenewton with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Shirenewton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shirenewton valuers.
Trailing protracted correspondence with the landlord of her garden flat in Shirenewton, Harriet commenced the lease extension process just as her lease was nearing the critical eighty-year mark. The transaction completed in June 2008. The landlord’s fees were restricted to below 650 pounds.
In 2013 we were phoned by Mr and Mrs. B Kelly who, having was assigned a lease of a purpose-built apartment in Shirenewton in May 1995. The dilemma was if we could estimate the premium would likely be to prolong the lease by ninety years. Comparable residencies in Shirenewton with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £45 billed annually. The lease expiry date was on 26 July 2097. Having 72 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.
In 2009 we were called by Mr and Mrs. P Robinson who, having completed a garden apartment in Shirenewton in May 1999. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Shirenewton with 100 year plus lease were worth £233,200. The mid-range amount of ground rent was £60 billed annually. The lease lapsed in 2086. Taking into account 61 years remaining we estimated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including professional charges.