The market value of a leasehold property in Shenley Church End is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be concluded ahead of the eighty year cut off point. Statute entitles Shenley Church End qualifying lessees to an additional term of 90 years over and above the remaining term, at a nominal rent (no ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Shenley Church End with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Shenley Church End can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in this area.
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 dealing with Shenley Church End lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Milo was the the leasehold owner of a conversion apartment in Shenley Church End on the market with a lease of a few days over sixty years left. Milo on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Milo to exercise his statutory right. Milo obtained expert advice and secured satisfactory deal without resorting to tribunal and sell the property.
In 2011 we were approached by Dr Seth Khan who, having completed a first floor flat in Shenley Church End in January 2003. The question was if we could estimate the price could be for a ninety year lease extension. Similar residencies in Shenley Church End with 100 year plus lease were valued around £280,000. The average amount of ground rent was £45 billed quarterly. The lease lapsed on 20 April 2096. Given that there were 70 years outstanding we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
In 2010 we were called by Mr Evan Michel who, having acquired a one bedroom apartment in Shenley Church End in April 1995. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Shenley Church End with 100 year plus lease were worth £223,400. The mid-range amount of ground rent was £60 billed monthly. The lease finished in 2085. Taking into account 59 years left we calculated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 not including professional charges.