Shenley Brook End leases on domestic deteriorating in value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be payable. Leasehold owners in Shenley Brook End will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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 |
Lease extensions in Shenley Brook End can be a difficult process. We recommend you secure guidance 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 a wealth of experience procuring Shenley Brook End lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Liam, came seriously near to the 80-year mark with the lease on his ground floor apartment in Shenley Brook End. Having purchased his property 18 years previously, the unexpired term was of no relevance. Fortunately, he became aware that he would imminently be paying way over the odds for a lease extension. Liam arranged for a lease extension just under the wire last September. Liam and the landlord ultimately settled on sum of £5,500 . If the lease had descended below eighty years, the amount would have gone up by at least £1,000.
In 2009 we were e-mailed by Mr and Mrs. L Collins who, having moved into a purpose-built flat in Shenley Brook End in January 2005. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical premises in Shenley Brook End with a long lease were worth £171,800. The average ground rent payable was £55 collected monthly. The lease came to a finish on 14 November 2075. Given that there were 50 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of expenses.
Ms W Turner purchased a newly refurbished apartment in Shenley Brook End in July 2005. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable residencies in Shenley Brook End with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease terminated on 16 March 2095. Given that there were 70 years left we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.