Chances are that where you own a flat in Shepherd's Bush you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Engaging our service gives you better control over the value of your Shepherd's Bush leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Kian, came dangerously near to the 80-year mark with the lease on his studio flat in Shepherd's Bush. Having bought his home 18 years ago, the unexpired term was of no interest. Fortunately, he noticed he needed to take steps soon on a lease extension. Kian arranged for a lease extension just under the wire last September. Kian and the landlord eventually agreed on the final figure of £5,000 . If he failed to meet the deadline, the price would have increased by at least £975.
Dr C Mason bought a purpose-built apartment in Shepherd's Bush in February 2008. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical flats in Shepherd's Bush with 100 year plus lease were valued about £257,800. The mid-range amount of ground rent was £65 collected monthly. The lease ran out on 11 April 2091. Considering the 65 years left we approximated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of legals.
An example of a Freehold Enfranchisement decision for a Shepherd's Bush premises is 82 Minford Gardens in February 2009. The Tribunal determined that the enfranchisement price was £37,341 This case related to 2 flats. The remaining number of years on the lease was 72.92 years.