Shadwell residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
Leasehold residencies in Shadwell with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Engaging our service will provide you better control over the value of your Shadwell leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Ethan, came critically near to the 80-year threshold with the lease on his ground floor flat in Shadwell. Having purchased his flat two decades ago, the length of the lease was of no interest. Luckily, he realised he needed to take action soon on Extending the lease. Ethan arranged for a lease extension at the eleventh hour in September. Ethan and the freeholder via the management company eventually settled on the final figure of £5,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £850.
Dr Jack Miller was assigned a lease of a studio flat in Shadwell in March 2000. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparable premises in Shadwell with an extended lease were worth £267,600. The average ground rent payable was £65 billed annually. The lease elapsed on 21 May 2092. Taking into account 67 years left we calculated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 plus expenses.
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 unexpired term as at the valuation date was 101.61 years.