Unfortunately that a Shepherd's Bush residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Shepherd's Bush property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining slips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Shepherd's Bush will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
|Accord Mortgages||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.|
|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.|
|Lloyds TSB Scotland||Minimum 70 years from the date of the mortgage.|
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 conveyancing solicitor we work with provide it.
Off the back of protracted discussions with the freeholder of her garden apartment in Shepherd's Bush, Alisha commenced the lease extension process as the eighty year deadline was swiftly nearing. The lease extension was finalised in July 2010. The landlord’s fees were kept to an absolute minimum.
In 2013 we were phoned by Mr and Mrs. O Bertrand who, having took over the lease of a purpose-built apartment in Shepherd's Bush in April 2009. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical premises in Shepherd's Bush with an extended lease were in the region of £260,200. The average amount of ground rent was £65 billed monthly. The lease concluded in 2089. Considering the 66 years outstanding we approximated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Shepherd's Bush property 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.