Shillington residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold residencies in Shillington with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 landlord in Shillington,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 experience and the close ties they enjoy with Shillington valuers.
During the course of the last few months Henry, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Shillington. In buying his property two decades ago, the unexpired term was of minimal relevance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Henry was able to extend his lease just ahead of time in June. Henry and the landlord subsequently settled on an amount of £5,000 . If the lease had gone to less than eighty years, the amount would have increased by a minimum £1,050.
In 2010 we were called by Dr B Johnson who, having was assigned a lease of a ground floor flat in Shillington in October 2003. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparative premises in Shillington with an extended lease were worth £275,000. The mid-range ground rent payable was £65 billed every twelve months. The lease came to a finish in 2092. Taking into account 68 years outstanding we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.
Dr U Thomas was assigned a lease of a recently refurbished flat in Shillington in June 1996. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparative homes in Shillington with a long lease were worth £208,600. The mid-range amount of ground rent was £60 billed annually. The lease concluded on 7 July 2081. Having 57 years left we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of fees.