Shrivenham leases on residential properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Shrivenham will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Shrivenham can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.
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 dealing with Shrivenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Archie, started to get near to the 80-year mark with the lease on his studio flat in Shrivenham. In buying his flat twenty years ago, the unexpired term was of minimal significance. by good luck, he recognised he would soon be paying way over the odds for a lease extension. Archie was able to extend his lease just under the wire in April. Archie and the landlord eventually agreed on an amount of £5,500 . If he not met the deadline, the figure would have become more exhorbitant by a minimum £1,100.
Last month we were approach by Mr and Mrs. R Díaz , who took over the lease of a one bedroom apartment in Shrivenham in September 2004. The question was if we could estimate the price could be for a 90 year extension to my lease. Identical properties in Shrivenham with a long lease were worth £227,800. The mid-range ground rent payable was £45 collected every twelve months. The lease ran out in 2091. Given that there were 65 years outstanding we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.
Mr and Mrs. R White moved into a first floor flat in Shrivenham in October 2002. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative premises in Shrivenham with an extended lease were worth £275,000. The mid-range ground rent payable was £55 billed quarterly. The lease ended in 2102. Given that there were 76 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.