There is no doubt about it a leasehold property in Shepherd's Bush is a wasting asset as a result of the shortening lease. If the lease has, over 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner than later. The majority of flat owners in Shepherd's Bush will qualify for this right; nevertheless a lawyer will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
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 conveyancer we work with provide it.
Following lengthy negotiations with the landlord of her two bedroom apartment in Shepherd's Bush, Olivia started the lease extension process as the eighty year threshold was rapidly advancing. The transaction completed in February 2015. The freeholder’s fees were negotiated to under 550 pounds.
Last July we were e-mailed by Dr William Collins , who moved into a one bedroom flat in Shepherd's Bush in July 2009. The question was if we could approximate the premium would likely be for a 90 year lease extension. Identical properties in Shepherd's Bush with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 collected yearly. The lease terminated on 7 May 2097. Having 71 years outstanding we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal 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 affected 2 flats. The remaining number of years on the lease was 72.92 years.