There is no doubt about it a leasehold property in Shadwell is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner than later. Many flat owners in Shadwell will meet the qualifying criteria; however a conveyancer will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Shadwell,the lease extension lawyers 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 Shadwell valuers.
In 2014 Michael, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Shadwell. Having bought his home twenty years ago, the lease term was of little interest. Fortunately, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Michael arranged for a lease extension just ahead of time last August. Michael and the landlord subsequently settled on a premium of £5,500 . If he failed to meet the deadline, the figure would have escalated by a minimum £850.
Mr and Mrs. M Sharif acquired a first floor flat in Shadwell in June 2010. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparable homes in Shadwell with an extended lease were valued around £208,600. The average amount of ground rent was £60 collected yearly. The lease lapsed on 12 April 2082. Given that there were 57 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Shadwell residence is 12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the acquisition of the freehold to the subject premises was the sum of £18,300 This case affected 3 flats. The number of years remaining on the existing lease(s) was 101.61 years.