When it comes to residential leasehold property in Shenley Brook End, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are less than 80 years left. Leasehold owners in Shenley Brook End with a lease nearing 81 years remaining should seriously consider extending it without delay. When the lease term has below 80 years left, under the relevant legislation the landlord can calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Shenley Brook End can be a difficult process. We recommend you secure 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 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.
Last Christmas Sebastian, came very near to the 80-year threshold with the lease on his first floor flat in Shenley Brook End. In buying his home 19 years previously, the unexpired term was of no interest. Fortunately, he realised he needed to take steps soon on a lease extension. Sebastian was able to extend his lease just ahead of time in September. Sebastian and the freeholder in the end agreed on the final figure of £6,000 . If he had missed the deadline, the price would have increased by at least £1,025.
Last May we were phoned by Mrs E Lambert , who purchased a ground floor apartment in Shenley Brook End in June 2000. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable flats in Shenley Brook End with a long lease were in the region of £189,000. The average ground rent payable was £55 billed quarterly. The lease ran out on 16 January 2079. Having 53 years remaining we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including fees.
In 2013 we were e-mailed by Mr Y Wilson who, having purchased a first floor apartment in Shenley Brook End in April 2007. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparative flats in Shenley Brook End with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected monthly. The lease terminated in 2099. Having 73 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.