Shaftesbury leases on residential deteriorating in value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. Leasehold owners in Shaftesbury will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and procedures to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Shaftesbury,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 Shaftesbury valuers.
Following protracted negotiations with the landlord of her garden apartment in Shaftesbury, Erin commenced the lease extension process just as the lease was coming close to the all-important 80-year mark. The lease extension was finalised in May 2009. The freeholder’s charges were negotiated to under 600 GBP.
Last Christmas we were phoned by Mr and Mrs. J Davies , who was assigned a lease of a purpose-built flat in Shaftesbury in June 2012. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Similar premises in Shaftesbury with a long lease were in the region of £243,000. The average amount of ground rent was £65 invoiced yearly. The lease concluded in 2087. Considering the 63 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of fees.
Dr Mollie Brown completed a one bedroom flat in Shaftesbury in January 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Shaftesbury with a long lease were in the region of £181,600. The mid-range ground rent payable was £55 invoiced yearly. The lease expired on 4 September 2076. Taking into account 52 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of fees.