With a domestic leasehold property in Shrewton, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Residents in Shrewton with a lease drawing near to 81 years unexpired should seriously consider extending it sooner as opposed to later. Once the lease term has under eighty years remaining, under the current Act the freeholder can calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Regardless of whether you are a tenant or a freeholder in Shrewton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shrewton valuers.
Trailing unsuccessful negotiations with the freeholder of her ground floor apartment in Shrewton, Abigail commenced the lease extension process as the eighty year deadline was rapidly nearing. The transaction was finalised in November 2006. The landlord’s costs were restricted to a tad over 550 pounds.
In 2009 we were called by Dr U Green who, having moved into a basement apartment in Shrewton in July 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar premises in Shrewton with 100 year plus lease were valued around £285,000. The average amount of ground rent was £45 billed yearly. The lease expired in 2096. Given that there were 71 years left we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.
In 2009 we were e-mailed by Mr F Howard who, having moved into a one bedroom flat in Shrewton in June 2010. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical premises in Shrewton with an extended lease were valued about £230,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease ended on 19 January 2085. Given that there were 60 years outstanding we approximated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 not including professional charges.