Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Great Shelford. Inevitably, the period of lease remaining reduces over time. This may pass by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Great Shelford have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. You should give due deliberation before putting off your Great Shelford lease extension. Putting off the cost now only increases the price you will ultimately incur to extend your lease
Leasehold premises in Great Shelford with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Great Shelford,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Great Shelford valuers.
Callum owned a high value flat in Great Shelford on the market with a lease of fraction over 61 years unexpired. Callum informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Callum to invoke his statutory right. Callum procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2009 we were called by Mr U Torres who, having was assigned a lease of a purpose-built flat in Great Shelford in August 1995. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical properties in Great Shelford with a long lease were worth £265,000. The mid-range amount of ground rent was £55 collected monthly. The lease concluded on 24 October 2099. Given that there were 74 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
In 2009 we were approached by Ms U Mason who, having bought a first floor flat in Great Shelford in October 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Similar residencies in Great Shelford with an extended lease were in the region of £166,400. The average ground rent payable was £60 collected per annum. The lease ran out on 14 August 2079. Having 54 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus legals.