There is no doubt about it a leasehold property in Shrivenham is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 100 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Shrivenham will meet the qualifying criteria; however a conveyancer should be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Shrivenham with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
The conveyancing solicitors that we work with handle Shrivenham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Liam owned a 2 bedroom apartment in Shrivenham being marketed with a lease of a little over 61 years remaining. Liam informally approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Liam to exercise his statutory right. Liam obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Mr Ollie Turner purchased a basement flat in Shrivenham in November 1998. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable residencies in Shrivenham with an extended lease were valued around £265,000. The mid-range ground rent payable was £55 invoiced monthly. The lease elapsed on 21 February 2099. Taking into account 74 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
In 2012 we were contacted by Mr and Mrs. F Cox who, having completed a ground floor apartment in Shrivenham in July 2001. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Shrivenham with an extended lease were valued around £166,400. The average amount of ground rent was £60 billed annually. The lease lapsed on 26 July 2079. Given that there were 54 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of costs.