When it comes to residential leasehold property in Shepherd's Bush, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than 80 years left. Leasehold owners in Shepherd's Bush with a lease approaching 81 years remaining should seriously think of extending it without delay. Once a lease has under 80 years remaining, under the relevant statute the landlord is entitled to calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Shepherd's Bush with in excess of 100 years left on the lease are sometimes 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 purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Shepherd's Bush can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Shepherd's Bush lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Nathaniel, started to get near to the eighty-year threshold with the lease on his studio flat in Shepherd's Bush. Having purchased his flat two decades ago, the unexpired term was of no importance. Luckily, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Nathaniel arranged for a lease extension just in the nick of time last June. Nathaniel and the freeholder via the managing agents subsequently agreed on a premium of £5,000 . If the lease had gone to less than 80 years, the premium would have increased by a minimum £1,025.
In 2012 we were approached by Mr and Mrs. A Murphy who, having completed a newly refurbished apartment in Shepherd's Bush in November 2007. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Comparative premises in Shepherd's Bush with an extended lease were in the region of £290,000. The average ground rent payable was £45 invoiced every twelve months. The lease concluded on 9 March 2099. Considering the 73 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
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 affected 2 flats. The remaining number of years on the lease was 72.92 years.