As the length of the unexpired term of a Shenley domestic lease decreases so does its value and therefore the value of your property. If the residual term has, in excess of 100 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner than later. Most flat owners in Shenley will qualify for this right; nevertheless a lawyer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Shenley with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Shenley 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 conveyancer we work with provide it.
Ryan was the the leasehold owner of a 2 bedroom flat in Shenley on the market with a lease of just over fifty eight years outstanding. Ryan on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2010 we were approached by Mr D Miller who, having owned a one bedroom apartment in Shenley in August 2010. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar premises in Shenley with an extended lease were in the region of £168,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease ran out in 2081. Given that there were 55 years outstanding we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of legals.
An example of a Lease Extension decision for a Shenley residence is Ground Floor Maisonette 17 Milton Road in January 2014. The Tribunal determined the premium payable by the Applicant to the should be £13,299 This case was in relation to 1 flat. The unexpired residue of the current lease was 71.73 years.