On the balance of probabilities where you own a flat in Shenfield you actually own a long leasehold interest over your property
Leasehold premises in Shenfield with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle Shenfield 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.
Michael was the the leasehold proprietor of a studio flat in Shenfield on the market with a lease of a few days over fifty eight years remaining. Michael informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Michael to invoke his statutory right. Michael obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Mr and Mrs. G Ali was assigned a lease of a garden flat in Shenfield in January 2005. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Shenfield with 100 year plus lease were valued about £225,400. The average amount of ground rent was £45 invoiced per annum. The lease expiry date was in 2088. Given that there were 64 years remaining we approximated the premium to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of legals.
Last April we were phoned by Mr Harrison Sharif , who completed a ground floor apartment in Shenfield in September 2009. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Comparable flats in Shenfield with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected monthly. The lease ended on 25 April 2099. Taking into account 75 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.