Shadwell leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Shadwell will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold premises in Shadwell with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Shadwell,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shadwell valuers.
In 2014 Theo, started to get near to the 80-year threshold with the lease on his purpose- built flat in Shadwell. Having purchased his property two decades ago, the unexpired term was of little interest. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Theo extended the lease just under the wire last May. Theo and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If he failed to meet the deadline, the sum would have gone up by at least £1,000.
Mr and Mrs. F Simon took over the lease of a one bedroom flat in Shadwell in November 2004. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable flats in Shadwell with a long lease were in the region of £275,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease expired in 2094. Having 68 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Shadwell flat 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 remaining number of years on the lease was 101.61 years.