The only way is down when it comes to Great Shelford lease terms. Great Shelford leaseholds that have a remaining term fewer than eighty years will drop in value even faster, and the cost of extending your lease will increase.
Leasehold properties in Great Shelford with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Great Shelford leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Milo was the the leasehold proprietor of a 2 bedroom flat in Great Shelford being marketed with a lease of a little over 59 years left. Milo informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Milo to invoke his statutory right. Milo procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Mr and Mrs. D Roberts bought a first floor flat in Great Shelford in May 2009. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Similar properties in Great Shelford with an extended lease were in the region of £218,000. The average amount of ground rent was £45 collected monthly. The lease ended on 1 February 2088. Having 63 years left we calculated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 not including legals.
Last Summer we were approach by Dr Tommy Rivera , who moved into a first floor apartment in Great Shelford in January 2002. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable flats in Great Shelford with an extended lease were worth £265,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease lapsed on 10 June 2099. Given that there were 74 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.