Shepherd's Bush leases on residential deteriorating in value. if your lease has approximately ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Shepherd's Bush will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Shepherd's Bush,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shepherd's Bush valuers.
Harrison owned a high value flat in Shepherd's Bush on the market with a lease of a little over 61 years outstanding. Harrison informally spoke with his landlord 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 on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert advice and secured satisfactory resolution informally and readily saleable.
Last Spring we were called by Mr and Mrs. U Reed , who owned a purpose-built apartment in Shepherd's Bush in April 1998. The question was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative homes in Shepherd's Bush with a long lease were in the region of £205,000. The average amount of ground rent was £50 collected quarterly. The lease expiry date was in 2103. Taking into account 78 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.
An example of a Freehold Enfranchisement case for a Shepherd's Bush residence is 82 Minford Gardens in February 2009. The Tribunal determined that the enfranchisement price was £37,341 This case affected 2 flats. The unexpired lease term was 72.92 years.