Unfortunately that a Shenfield residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Shenfield property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be payable. Most flat owners in Shenfield will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes 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.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Leeds Building Society | |
| TSB |
Lease extensions in Shenfield can be a difficult process. We recommend you get guidance from a conveyancing solicitor 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.
Ryan was the the leasehold owner of a high value flat in Shenfield on the market with a lease of a little over 59 years left. Ryan on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Ryan to exercise his statutory right. Ryan procured expert advice and secured satisfactory deal informally and readily saleable.
Mr and Mrs. T Gunderson acquired a garden apartment in Shenfield in April 1996. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Comparable flats in Shenfield with 100 year plus lease were worth £254,200. The mid-range amount of ground rent was £60 invoiced annually. The lease came to a finish on 22 April 2077. Given that there were 51 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 not including fees.
Last Spring we were called by Mr and Mrs. J Brooks , who bought a basement flat in Shenfield in March 2002. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Comparable residencies in Shenfield with an extended lease were worth £210,600. The mid-range amount of ground rent was £45 collected quarterly. The lease expired on 5 October 2088. Given that there were 62 years left we calculated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of legals.