The value of Shenfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the unexpired lease term is less than eighty years
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Shenfield can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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.
Theo owned a studio apartment in Shenfield on the market with a lease of a little over 72 years unexpired. Theo informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Theo to invoke his statutory right. Theo obtained expert advice and secured satisfactory resolution informally and readily saleable.
Last Summer we were approach by Mr and Mrs. L Robinson , who moved into a garden flat in Shenfield in June 2004. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparable flats in Shenfield with 100 year plus lease were valued about £245,000. The mid-range amount of ground rent was £50 billed per annum. The lease elapsed on 5 February 2094. Having 68 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
Last August we were approach by Mr John Green , who took over the lease of a basement flat in Shenfield in August 2012. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparative premises in Shenfield with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced monthly. The lease elapsed in 2105. Taking into account 79 years remaining we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including expenses.