For anyone whose Shadwell property is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| TSB | |
| Royal Bank of Scotland | |
| Virgin |
The conveyancing solicitors that we work with undertake Shadwell lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In the wake of 6 months of lengthy negotiations with the freeholder of her first floor apartment in Shadwell, Stephanie commenced the lease extension process just as the lease was nearing the critical 80-year threshold. The lease extension was finalised in October 2009. The freeholder’s charges were negotiated to less than 650 GBP.
Last Winter we were approach by Mr and Mrs. Y Evans , who took over the lease of a first floor apartment in Shadwell in March 2006. The question was if we could approximate the price could be to extend the lease by a further 90 years. Identical residencies in Shadwell with an extended lease were worth £208,600. The average amount of ground rent was £60 billed yearly. The lease came to a finish in 2083. Given that there were 57 years remaining we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including expenses.
An example of a Freehold Enfranchisement case for a Shadwell premises 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 was in relation to 3 flats. The remaining number of years on the lease was 101.61 years.