Stop! Your Lease Extension in Shadwell Could Be FREE

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Many leaseholders in Shadwell are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Shadwell has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to commence your Shadwell lease extension

Top reasons for lease extension now:

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

The only way is down when it comes to Shadwell lease terms. Shadwell properties that have a lease term shorter than eighty years will de-escalate in value even faster, and the cost of extending your lease will increase.

An extended lease is almost the same value as a freehold

Leasehold residencies in Shadwell with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies may not grant a mortgage on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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.
Godiva Mortgages 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.

Why use us for your lease extension in Shadwell?

Retaining our service gives you increased control over the value of your Shadwell leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Shadwell Lease Extension Case Studies:

Lauren, Shadwell, Leeds,

Off the back of protracted discussions with the landlord of her first floor flat in Shadwell, Lauren initiated the lease extension process just as the lease was approaching the critical eighty-year deadline. The transaction was concluded in January 2007. The freeholder’s charges were restricted to below 500 pounds.

Shadwell case:

Last Winter we were phoned by Dr Ali Jones , who moved into a basement flat in Shadwell in November 1997. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Comparative residencies in Shadwell with a long lease were valued about £201,200. The average ground rent payable was £55 collected every twelve months. The lease lapsed in 2082. Having 56 years left we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of 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 affected 3 flats. The unexpired term as at the valuation date was 101.61 years.