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Top reasons for Shenfield lease extension


Top reasons for lease extension now:

Increase your lease and increase your Shenfield property value

Unfortunately that a Shenfield residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Shenfield property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Shenfield will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.

Mortgage lenders may not grant a mortgage on a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet mortgage lenders start to become nervous at around 75 years. This may be problematic when you wish to sell or remortgage your property as it will be effectively unmortgageable. Even though you might not have an immediate plan to sell but when you do your buyer will need to wait two years before they can commence the legal procedures for a lease extension.

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.
National Westminster Bank Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.
Santander You must report the unexpired lease term to us and await our instructions if:
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Royal Bank of Scotland Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.

Why use us for your lease extension in Shenfield?

Lease extensions in Shenfield can be a difficult process. We recommend you get professional help from a conveyancer 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 procuring Shenfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Shenfield Lease Extension Case Summaries:

Luke, Shenfield, Essex,

Luke owned a studio flat in Shenfield on the market with a lease of just over 59 years unexpired. Luke informally approached his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Luke to exercise his statutory right. Luke obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.

Shenfield case:

Last year we were e-mailed by Mr and Mrs. W Anderson , who was assigned a lease of a basement flat in Shenfield in February 2003. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Identical properties in Shenfield with an extended lease were in the region of £218,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease terminated on 4 February 2086. Having 63 years remaining we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including legals.

Shenfield case:

Last Winter we were called by Ms Sophie Stewart , who took over the lease of a ground floor apartment in Shenfield in September 2002. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Similar residencies in Shenfield with 100 year plus lease were worth £265,000. The average ground rent payable was £50 invoiced quarterly. The lease lapsed on 6 May 2097. Having 74 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.