The only way is down when it comes to Egremont lease terms. Egremont flats that have a lease term fewer than eighty years will reduce in value even faster, and the cost of extending your lease will go up.
Leasehold properties in Egremont with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
Engaging our service will provide you increased control over the value of your Egremont leasehold, as your property will be more valuable and saleable in terms 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.
Twenty four months ago Nathaniel, started to get near to the eighty-year threshold with the lease on his studio flat in Egremont. In buying his property two decades ago, the unexpired term was of little concern. Thankfully, it dawned on him that he would imminently be paying way over the odds for a lease extension. Nathaniel was able to extend his lease at the eleventh hour in April. Nathaniel and the freeholder via the managing agents ultimately agreed on the final figure of £5,500 . If he not met the deadline, the premium would have become more exhorbitant by at least £1,050.
Mrs Y Thomas completed a purpose-built flat in Egremont in January 2006. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical flats in Egremont with a long lease were in the region of £198,800. The average amount of ground rent was £55 invoiced monthly. The lease elapsed on 25 February 2081. Considering the 55 years left we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of professional charges.
Dr O Clarke completed a one bedroom flat in Egremont in January 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Egremont with a long lease were valued around £295,000. The average amount of ground rent was £45 invoiced per annum. The lease finished on 13 June 2101. Having 75 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.