Chances are that where you own a flat in Shrivenham you actually own a long leasehold interest over your property
Leasehold properties in Shrivenham with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Shrivenham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shrivenham valuers.
Last October Kyle, came precariously close to the eighty-year threshold with the lease on his one bedroom apartment in Shrivenham. In buying his flat two decades ago, the length of the lease was of minimal significance. As luck would have it, he realised he would soon be paying an inflated amount for a lease extension. Kyle arranged for a lease extension just ahead of time last September. Kyle and the freeholder in the end settled on an amount of £5,000 . If the lease had dropped below 80 years, the premium would have escalated by at least £1,050.
Mr and Mrs. A Dupont purchased a recently refurbished flat in Shrivenham in October 1999. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar residencies in Shrivenham with a long lease were worth £264,000. The average ground rent payable was £60 collected annually. The lease terminated in 2079. Given that there were 53 years unexpired we approximated the premium to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of costs.
In 2012 we were contacted by Mr and Mrs. I Peterson who, having moved into a studio apartment in Shrivenham in March 2004. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Shrivenham with an extended lease were worth £225,400. The mid-range amount of ground rent was £45 invoiced monthly. The lease lapsed on 3 October 2090. Taking into account 64 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 plus expenses.