Shillington leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Shillington will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some situations you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 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 |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service will provide you better control over the value of your Shillington leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Joshua owned a studio flat in Shillington on the market with a lease of just over 61 years unexpired. Joshua informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to exercise his statutory right. Joshua procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Last Christmas we were approach by Mr Reuben Laurent , who acquired a first floor flat in Shillington in July 2011. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Identical properties in Shillington with 100 year plus lease were valued about £189,000. The mid-range ground rent payable was £55 collected yearly. The lease expired on 21 April 2079. Given that there were 53 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus costs.
In 2014 we were approached by Mrs Jasmine Wood who, having took over the lease of a first floor apartment in Shillington in October 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Shillington with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease finished in 2099. Having 73 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.