The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Shenfield have the right to extend the lease for an additional ninety years in accordance with statute. Do give careful consideration before delaying your Shenfield lease extension. Putting off that expense now simply escalates the amount you will eventually have to pay for a lease extension.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Using our service gives you enhanced control over the value of your Shenfield leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the landlord of her purpose-built flat in Shenfield, Naomi started the lease extension process just as the lease was nearing the critical eighty-year mark. The lease extension was finalised in February 2010. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. C Norbert completed a ground floor flat in Shenfield in June 2007. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar homes in Shenfield with a long lease were in the region of £227,800. The average amount of ground rent was £45 collected monthly. The lease lapsed in 2090. Given that there were 65 years remaining we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.
In 2010 we were contacted by Ms D Lambert who, having was assigned a lease of a recently refurbished flat in Shenfield in October 1995. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar properties in Shenfield with a long lease were valued about £275,000. The average amount of ground rent was £55 billed per annum. The lease elapsed in 2101. Given that there were 76 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.