Shadwell leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Shadwell enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Shadwell you would be well advised to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Shadwell can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Shadwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy correspondence with the freeholder of her two bedroom apartment in Shadwell, Anna initiated the lease extension process just as her lease was coming close to the critical eighty-year deadline. The transaction completed in November 2012. The freeholder’s costs were negotiated to approximately 500 GBP.
In 2012 we were approached by Mr M Green who, having moved into a basement apartment in Shadwell in August 2008. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Identical homes in Shadwell with a long lease were valued around £260,200. The mid-range amount of ground rent was £65 billed monthly. The lease concluded on 10 June 2091. Taking into account 66 years left we estimated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 plus professional charges.
An example of a Freehold Enfranchisement case for a Shadwell property 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 residue of the current lease was 101.61 years.