Shenley Church End leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Shenley Church End residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Shenley Church End you should check if your lease has between seventy and ninety years left. There are good reasons why a Shenley Church End leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is actioned without delay
Leasehold premises in Shenley Church End with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 obtain guidance from a conveyancer and surveyor 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 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.
Seth was the the leasehold proprietor of a studio flat in Shenley Church End being sold with a lease of just over 59 years left. Seth informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Seth to invoke his statutory right. Seth obtained expert legal guidance and secured an acceptable deal informally and sell the property.
Last April we were phoned by Mr Y Evans , who owned a first floor apartment in Shenley Church End in April 2002. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Similar residencies in Shenley Church End with a long lease were valued around £275,000. The mid-range ground rent payable was £65 collected annually. The lease lapsed on 9 May 2094. Having 68 years remaining we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
Last Autumn we were phoned by Mr and Mrs. W Brooks , who owned a first floor flat in Shenley Church End in October 2003. The question was if we could estimate the price could be to extend the lease by a further 90 years. Comparative flats in Shenley Church End with a long lease were valued about £208,600. The mid-range ground rent payable was £60 invoiced annually. The lease lapsed in 2083. Given that there were 57 years remaining we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus costs.