With a domestic leasehold premises in Shoreditch, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may 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 greater especially when there are less than 80 years remaining. Residents in Shoreditch with a lease approaching 81 years left should seriously think of extending it sooner than later. When the lease term has less than eighty years outstanding, under the relevant Act the landlord is entitled to calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date 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. |
Regardless of whether you are a tenant or a landlord in Shoreditch,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shoreditch valuers.
In recent months Ali, came precariously close to the eighty-year mark with the lease on his ground floor apartment in Shoreditch. In buying his property 18 years previously, the length of the lease was of no importance. Fortunately, he became aware that he would imminently be paying an inflated amount for Extending the lease. Ali arranged for a lease extension just in the nick of time last June. Ali and the landlord in the end settled on sum of £5,500 . If he not met the deadline, the figure would have escalated by a minimum £900.
Mr George Moore owned a one bedroom apartment in Shoreditch in April 2012. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable flats in Shoreditch with 100 year plus lease were valued around £257,800. The average amount of ground rent was £65 invoiced yearly. The lease concluded on 12 November 2091. Taking into account 65 years outstanding we estimated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Shoreditch residence is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00. This case affected 2 flats. The unexpired term as at the valuation date was 72.39 years.