Egremont leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Egremont will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some cases you may not qualify. There are prescribed deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a property 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 property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Egremont 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.
After protracted discussions with the landlord of her ground floor apartment in Egremont, Leah initiated the lease extension process just as the lease was approaching the all-important eighty-year deadline. The legal work was finalised in May 2015. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. N Richardson acquired a basement flat in Egremont in January 2012. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative properties in Egremont with an extended lease were valued about £205,000. The average ground rent payable was £50 invoiced yearly. The lease lapsed on 10 June 2105. Considering the 79 years remaining we estimated the compensation to the landlord for the lease extension to be between £7,600 and £8,800 not including legals.
Last year we were called by Mr Toby Williams , who took over the lease of a one bedroom apartment in Egremont in August 2007. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparative premises in Egremont with a long lease were worth £270,000. The mid-range ground rent payable was £65 collected annually. The lease finished on 26 March 2094. Given that there were 68 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.