It’s an underpublicised certainty that a Shepherd's Bush residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Shepherd's Bush property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be payable. The majority of flat owners in Shepherd's Bush will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold premises in Shepherd's Bush with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Shepherd's Bush,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shepherd's Bush valuers.
During the course of the last few months David, came precariously near to the 80-year mark with the lease on his two bedroom apartment in Shepherd's Bush. Having purchased his property 19 years previously, the lease term was of minimal concern. by good luck, he became aware that he would soon be paying an inflated amount for a lease extension. David was able to extend his lease at the eleventh hour last September. David and the landlord subsequently settled on sum of £6,000 . If the lease had fallen below 80 years, the premium would have escalated by at least £1,100.
Mr and Mrs. T Bonnet moved into a garden apartment in Shepherd's Bush in October 2006. The question was if we could approximate the premium would be to extend the lease by 90 years. Similar premises in Shepherd's Bush with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 invoiced annually. The lease came to a finish in 2077. Given that there were 52 years remaining we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including expenses.
An example of a Freehold Enfranchisement decision 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 residue of the current lease was 72.92 years.