Shenfield leases on domestic properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Shenfield will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Shenfield with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The lawyers that we work with undertake Shenfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Daniel was the the leasehold proprietor of a 2 bedroom apartment in Shenfield on the market with a lease of just over 59 years left. Daniel on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Ms F Hernández was assigned a lease of a basement flat in Shenfield in July 2010. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparable properties in Shenfield with a long lease were worth £235,200. The mid-range amount of ground rent was £45 collected per annum. The lease expired on 26 August 2090. Considering the 66 years outstanding we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.
Last Winter we were phoned by Mr Dexter Ramírez , who owned a one bedroom flat in Shenfield in August 2004. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Identical flats in Shenfield with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 collected every twelve months. The lease ended in 2101. Considering the 77 years outstanding we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.