Shillington leases on domestic properties are gradually losing value. if your lease has approximately ninety 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 begin paying an additional element called marriage value. Leasehold owners in Shillington will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are also strict deadlines and formalities to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Shillington with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Shillington can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 Shillington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Tommy owned a conversion apartment in Shillington on the market with a lease of just over 61 years outstanding. Tommy on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Tommy to exercise his statutory right. Tommy procured expert advice and secured an acceptable deal informally and readily saleable.
Mrs S Mason acquired a one bedroom apartment in Shillington in February 2007. The question was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative homes in Shillington with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 collected annually. The lease lapsed on 23 October 2080. Taking into account 55 years unexpired we approximated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of costs.
Last September we were contacted by Mr and Mrs. V André , who moved into a one bedroom apartment in Shillington in August 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical properties in Shillington with a long lease were valued around £300,000. The average ground rent payable was £50 billed monthly. The lease concluded in 2100. Having 75 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.