Chances are that if you own a flat in Shepherd's Bush you actually own a long leasehold interest over your property
Leasehold premises in Shepherd's Bush with over one hundred years outstanding 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 to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Shepherd's Bush 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 conveyancing solicitor we work with provide it.
After unsuccessful discussions with the freeholder of her basement apartment in Shepherd's Bush, Molly initiated the lease extension process as the eighty year mark was fast approaching. The legal work was concluded in June 2008. The landlord’s charges were restricted to about 650 pounds.
In 2013 we were e-mailed by Mrs Laura Hernández who, having purchased a newly refurbished flat in Shepherd's Bush in April 1997. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical flats in Shepherd's Bush with a long lease were in the region of £216,000. The mid-range ground rent payable was £60 collected annually. The lease ended in 2084. Taking into account 58 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of costs.
An example of a Freehold Enfranchisement decision for a Shepherd's Bush flat is 82 Minford Gardens in February 2009. The Tribunal determined that the enfranchisement price was £37,341 This case related to 2 flats. The unexpired term was 72.92 years.