It’s an underpublicised truth that a Shenley Brook End residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Shenley Brook End property market.Once your lease nears 85ish years, you should start considering 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 due. The majority of flat owners in Shenley Brook End will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Virgin |
The lawyers that we work with handle Shenley Brook End lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Freddie was the the leasehold proprietor of a studio apartment in Shenley Brook End being sold with a lease of a few days over sixty years unexpired. Freddie informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Freddie to invoke his statutory right. Freddie procured expert legal guidance and secured an acceptable deal informally and sell the property.
In 2012 we were approached by Mr and Mrs. R Williams who, having completed a newly refurbished flat in Shenley Brook End in May 2007. We are asked if we could estimate the price could be to extend the lease by an additional years. Identical flats in Shenley Brook End with 100 year plus lease were in the region of £230,800. The average amount of ground rent was £60 collected every twelve months. The lease came to a finish on 20 July 2086. Considering the 60 years outstanding we approximated the premium to the freeholder to extend the lease to be between £24,700 and £28,600 not including fees.
In 2010 we were phoned by Mr and Mrs. O Khan who, having bought a studio apartment in Shenley Brook End in August 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Shenley Brook End with 100 year plus lease were worth £210,000. The mid-range ground rent payable was £50 invoiced per annum. The lease elapsed on 2 February 2106. Taking into account 80 years as a residual term we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.