With a domestic leasehold premises in Shillington, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Leasehold owners in Shillington with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has fewer than 80 years remaining, under the relevant statute the landlord is entitled to calculate and levy a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Shillington can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in this area.
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 a wealth of experience 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.
Half a year ago Alexander, came dangerously close to the 80-year threshold with the lease on his basement apartment in Shillington. In buying his home 19 years previously, the lease term was of no significance. by good luck, he noticed he would soon be paying way over the odds for Extending the lease. Alexander extended the lease just under the wire in September. Alexander and the freeholder via the managing agents in the end agreed on an amount of £6,000 . If the lease had fallen lower than 80 years, the amount would have increased by a minimum £1,100.
Mr and Mrs. W Martínez acquired a one bedroom apartment in Shillington in January 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Shillington with a long lease were worth £213,600. The mid-range ground rent payable was £60 collected per annum. The lease concluded on 15 September 2083. Given that there were 57 years outstanding we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including legals.
Mr and Mrs. V Leroy was assigned a lease of a one bedroom flat in Shillington in February 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Similar flats in Shillington with an extended lease were worth £200,000. The average ground rent payable was £50 invoiced annually. The lease lapsed in 2103. Considering the 77 years as a residual term we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.