It’s an underpublicised certainty that a Egremont residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Egremont property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Most leasehold owners in Egremont will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Yorkshire Building Society |
Engaging our service will provide you better control over the value of your Egremont leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jonathan was the the leasehold proprietor of a studio apartment in Egremont on the market with a lease of a little over sixty years remaining. Jonathan informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last Christmas we were approach by Mr Mason Dupont , who owned a ground floor apartment in Egremont in October 2007. The question was if we could estimate the price would likely be to extend the lease by an additional years. Similar properties in Egremont with an extended lease were worth £225,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease finished in 2086. Taking into account 60 years left we approximated the compensation to the landlord to extend the lease to be within £25,700 and £29,600 not including expenses.
In 2012 we were called by Dr Reuben Cox who, having acquired a basement flat in Egremont in May 2005. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable homes in Egremont with an extended lease were in the region of £210,000. The average amount of ground rent was £50 invoiced quarterly. The lease termination date was in 2106. Given that there were 80 years left we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.