Shortlands leases on residential deteriorating in value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Shortlands will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Shortlands with over 100 years unexpired 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage 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 |
Lease extensions in Shortlands can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 procuring Shortlands lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Ibrahim, came precariously close to the eighty-year mark with the lease on his two bedroom flat in Shortlands. Having bought his home two decades ago, the unexpired term was of minimal bearing. by good luck, he became aware that he would imminently be paying an inflated amount for Extending the lease. Ibrahim arranged for a lease extension at the eleventh hour last January. Ibrahim and the freeholder in the end agreed on a premium of £5,000 . If the lease had gone below eighty years, the amount would have gone up by at least £1,050.
Mr I Davis moved into a basement apartment in Shortlands in April 2012. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative flats in Shortlands with 100 year plus lease were in the region of £223,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease lapsed in 2085. Given that there were 59 years left we estimated the premium to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a Shortlands flat is Ravensbourne Lodge 4 Highland Road in February 2013. the Tribunal held that the amount payable for the freehold was £22,268