There is no doubt about it a leasehold property in Shenfield is a wasting asset as a result of the shortening lease. Where the residual term has, over 125 years remaining then this decrease may be negligible however there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in Shenfield will qualify for this right; that being said a conveyancer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Shenfield with in excess of one hundred years remaining on the lease are often 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 to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Leeds Building Society | |
| Santander | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Engaging our service will provide you increased control over the value of your Shenfield leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
William owned a conversion flat in Shenfield being marketed with a lease of a little over 61 years left. William on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were William to invoke his statutory right. William procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Dr Owen Flores completed a basement apartment in Shenfield in March 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Comparable premises in Shenfield with a long lease were valued around £255,000. The mid-range ground rent payable was £50 collected yearly. The lease finished in 2097. Considering the 71 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
In 2010 we were e-mailed by Mrs V Allen who, having took over the lease of a ground floor flat in Shenfield in February 2010. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Shenfield with a long lease were valued around £254,200. The average ground rent payable was £60 invoiced monthly. The lease ran out on 5 March 2077. Having 51 years left we approximated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 not including costs.