With a long leasehold premises in Shadwell, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than eighty years remaining. Anyone in Shadwell with a lease nearing 81 years remaining should seriously consider extending it without delay. When the lease term has less than 80 years remaining, under the relevant Act the freeholder is entitled to calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Shadwell with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Nationwide Building Society | |
| Santander | |
| TSB | |
| Virgin |
Regardless of whether you are a tenant or a freeholder in Shadwell,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shadwell valuers.
Muhammad owned a high value flat in Shadwell on the market with a lease of a few days over fifty eight years outstanding. Muhammad on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last Christmas we were phoned by Mr and Mrs. J Collins , who was assigned a lease of a one bedroom apartment in Shadwell in April 2007. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical homes in Shadwell with an extended lease were in the region of £184,000. The average amount of ground rent was £55 collected annually. The lease concluded in 2079. Taking into account 53 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including expenses.
An example of a Freehold Enfranchisement matter before the tribunal 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 affected 3 flats. The remaining number of years on the lease was 101.61 years.