Unfortunately that a Egremont residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Egremont property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term drops under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Egremont will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations 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 throughout the formalities.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Halifax | |
| Nationwide Building Society | |
| Yorkshire Building Society |
Retaining our service gives you enhanced control over the value of your Egremont leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Theo owned a high value flat in Egremont on the market with a lease of just over sixty years left. Theo informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Theo to exercise his statutory right. Theo obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last month we were approach by Dr T Howard , who moved into a ground floor flat in Egremont in February 2008. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar premises in Egremont with a long lease were worth £250,400. The average amount of ground rent was £65 collected every twelve months. The lease elapsed on 5 July 2090. Given that there were 64 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of expenses.
Last Autumn we were called by Dr M González , who purchased a one bedroom apartment in Egremont in November 2010. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar homes in Egremont with a long lease were valued about £184,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease ran out in 2079. Having 53 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of costs.