Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Shillington. Inevitably, the length of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the property has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Eligible leaseholders in Shillington have the right to extend the lease for an additional ninety years under statute. Do give due consideration before delaying your Shillington lease extension. Holding off that expense now likely increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Shillington with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Shillington leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of unsuccessful correspondence with the freeholder of her garden apartment in Shillington, Jodie started the lease extension process as the eighty year deadline was quickly advancing. The transaction was finalised in March 2009. The landlord’s charges were negotiated to less than 550 GBP.
In 2010 we were phoned by Mr and Mrs. A Gunderson who, having bought a first floor apartment in Shillington in October 1998. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Comparable residencies in Shillington with 100 year plus lease were in the region of £206,200. The average amount of ground rent was £60 invoiced every twelve months. The lease concluded on 15 August 2082. Considering the 56 years remaining we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of costs.
In 2009 we were contacted by Ms R David who, having moved into a first floor flat in Shillington in February 2001. The question was if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative homes in Shillington with an extended lease were valued around £300,000. The mid-range amount of ground rent was £50 collected annually. The lease expired on 11 November 2102. Having 76 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.