Shenfield leases on domestic properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease falls under eighty years - otherwise a higher amount will be payable. Leasehold owners in Shenfield will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not qualify. There are prescribed timetables and steps to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Santander |
Lease extensions in Shenfield can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Shenfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Finn, started to get close to the eighty-year mark with the lease on his one bedroom flat in Shenfield. In buying his home two decades ago, the unexpired term was of minimal importance. Fortunately, he became aware that he would imminently be paying an inflated amount for Extending the lease. Finn arranged for a lease extension just ahead of time in January. Finn and the landlord ultimately agreed on an amount of £5,500 . If the lease had fallen to less than eighty years, the sum would have increased by at least £875.
In 2010 we were e-mailed by Mr P Hall who, having moved into a basement flat in Shenfield in June 2008. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar homes in Shenfield with an extended lease were worth £218,000. The mid-range amount of ground rent was £45 collected quarterly. The lease ended on 14 May 2089. Having 63 years remaining we approximated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 plus fees.
In 2012 we were e-mailed by Mrs Elizabeth Ward who, having owned a ground floor flat in Shenfield in September 2000. The question was if we could estimate the premium could be to prolong the lease by ninety years. Similar homes in Shenfield with a long lease were valued around £270,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease end date was on 4 April 2100. Having 74 years left we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.