When it comes to long leasehold property in Shenfield, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years left. Leasehold owners in Shenfield with a lease nearing 81 years unexpired should seriously consider extending it sooner as opposed to later. Once the lease term has fewer than eighty years remaining, under the current legislation the freeholder can calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
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 ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Shenfield,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shenfield valuers.
In 2014 James, started to get near to the eighty-year threshold with the lease on his studio apartment in Shenfield. Having purchased his property two decades ago, the unexpired term was of minimal bearing. by good luck, he realised he would soon be paying way over the odds for Extending the lease. James arranged for a lease extension at the eleventh hour in March. James and the freeholder ultimately settled on the final figure of £5,000 . If he had missed the deadline, the figure would have escalated by a minimum £1,025.
In 2012 we were approached by Mrs Chloe Girard who, having completed a ground floor apartment in Shenfield in February 1996. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Shenfield with a long lease were worth £176,200. The average amount of ground rent was £65 invoiced yearly. The lease concluded on 12 July 2082. Taking into account 56 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of costs.
In 2011 we were called by Mr and Mrs. O André who, having purchased a recently refurbished apartment in Shenfield in March 1996. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable homes in Shenfield with an extended lease were in the region of £242,600. The average ground rent payable was £45 collected annually. The lease elapsed on 9 October 2093. Given that there were 67 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including fees.