As the length of the unexpired term of a Shortlands residential lease diminished so does its value and therefore the value of your property. Where the residual term has, more than 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 eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Shortlands will meet the qualifying criteria; that being said a conveyancer should be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Shortlands with in excess of one hundred years left 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| TSB |
Irrespective of whether you are a tenant or a freeholder in Shortlands,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shortlands valuers.
Jasper owned a conversion apartment in Shortlands being marketed with a lease of a few days over 72 years left. Jasper on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jasper to exercise his statutory right. Jasper obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
In 2012 we were called by Mr and Mrs. C Patel who, having took over the lease of a one bedroom apartment in Shortlands in April 1996. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparable residencies in Shortlands with a long lease were valued about £265,200. The mid-range amount of ground rent was £65 billed per annum. The lease expiry date was on 25 September 2092. Given that there were 66 years left we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Shortlands property is Ravensbourne Lodge 4 Highland Road in February 2013. the Tribunal held that the amount payable for the freehold was £22,268