With a domestic leasehold property in Egremont, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Residents in Egremont with a lease approaching 81 years remaining should seriously think of extending it without delay. Once the lease term has below eighty years outstanding, under the relevant Act the landlord can calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Lease extensions in Egremont can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Egremont lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lucas was the the leasehold owner of a high value apartment in Egremont on the market with a lease of a little over 61 years outstanding. Lucas on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Lucas to invoke his statutory right. Lucas obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Dr A Reed was assigned a lease of a purpose-built apartment in Egremont in August 2010. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Egremont with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £45 collected per annum. The lease terminated on 8 January 2096. Considering the 71 years left we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus expenses.
In 2013 we were called by Mr and Mrs. I Davies who, having was assigned a lease of a ground floor apartment in Egremont in November 2000. The question was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative homes in Egremont with 100 year plus lease were valued around £230,800. The mid-range amount of ground rent was £60 invoiced quarterly. The lease finished on 11 February 2085. Taking into account 60 years unexpired we estimated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 not including costs.