Shadwell Lease Extension - Free Consultation

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Why you should start your Shadwell lease extension


Top reasons for lease extension now:

A Shadwell lease depreciates with the years remaining on the lease.

With a long leasehold premises in Shadwell, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than eighty years remaining. Residents in Shadwell with a lease drawing near to 81 years remaining should seriously consider extending it sooner rather than later. When a lease has below eighty years left, under the relevant legislation the landlord can calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Lending institutions may not grant a mortgage on a short lease

Most banks have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are regarded as inadequate security.

Lender Requirement
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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.
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.
Royal Bank of Scotland Mortgage term plus 30 years.

Get in touch with one of our Shadwell lease extension solicitors or enfranchisement solicitors

Engaging our service gives you enhanced control over the value of your Shadwell 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.

Shadwell Lease Extension Case Summaries:

Jasmine, Shadwell, Leeds,

Subsequent to unsuccessful correspondence with the landlord of her studio apartment in Shadwell, Jasmine initiated the lease extension process just as the lease was nearing the crucial eighty-year mark. The transaction completed in April 2011. The freeholder’s fees were restricted to a tad over 700 pounds.

Shadwell case:

In 2013 we were contacted by Ms R Ward who, having purchased a garden apartment in Shadwell in October 2012. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Similar homes in Shadwell with 100 year plus lease were in the region of £166,800. The mid-range amount of ground rent was £50 billed every twelve months. The lease lapsed in 2075. Given that there were 50 years unexpired we calculated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus expenses.

Decision in Southwark

An example of a Freehold Enfranchisement decision for a Shadwell residence is 12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the acquisition of the freehold to the subject premises was the sum of £18,300 This case related to 3 flats. The number of years remaining on the existing lease(s) was 101.61 years.