The only way is down when it comes to Shadwell lease terms. Shadwell properties that have a remaining term less than than eighty years will reduce in market price even faster, and the cost to extend your lease will rise.
Leasehold residencies in Shadwell with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Shadwell leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Jackson, started to get near to the eighty-year mark with the lease on his first floor flat in Shadwell. Having bought his property twenty years ago, the length of the lease was of minimal bearing. Luckily, he recognised he would imminently be paying an inflated amount for a lease extension. Jackson arranged for a lease extension just ahead of time last September. Jackson and the freeholder via the managing agents subsequently agreed on sum of £5,000 . If the lease had dipped below 80 years, the sum would have escalated by at least £1,025.
Mr and Mrs. O Thompson was assigned a lease of a purpose-built apartment in Shadwell in February 2001. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical homes in Shadwell with a long lease were worth £250,400. The mid-range amount of ground rent was £65 collected monthly. The lease came to a finish on 15 October 2088. Considering the 64 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of legals.
An example of a Freehold Enfranchisement decision 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 related to 3 flats. The unexpired lease term was 101.61 years.