The re-sale value of a leasehold property in Shepherd's Bush is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be finalised ahead of the eighty year mark. Statute enables Shepherd's Bush qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
Benjamin was the the leasehold owner of a conversion flat in Shepherd's Bush being marketed with a lease of a few days over 61 years remaining. Benjamin on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Benjamin to invoke his statutory right. Benjamin procured expert advice and secured satisfactory deal informally and sell the flat.
Dr Teddy Brooks completed a newly refurbished flat in Shepherd's Bush in January 2003. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical premises in Shepherd's Bush with 100 year plus lease were valued about £248,000. The mid-range ground rent payable was £65 collected annually. The lease termination date was in 2089. Considering the 63 years outstanding we estimated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 plus fees.
An example of a Freehold Enfranchisement decision for a Shepherd's Bush residence 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 as at the valuation date was 72.92 years.