The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Egremont may extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Egremont lease extension. Putting off that expense now simply increases the amount you will eventually be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | 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 conveyancing solicitors that we work with handle 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 conveyancing solicitor we work with provide it.
Off the back of unsuccessful negotiations with the freeholder of her purpose-built flat in Egremont, Alice started the lease extension process just as the lease was nearing the all-important 80-year threshold. The lease extension was concluded in May 2015. The landlord’s costs were negotiated to below 550 pounds.
Mr Leo Gómez bought a purpose-built apartment in Egremont in September 2012. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable homes in Egremont with a long lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease ended in 2102. Considering the 77 years remaining we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.
Mr N Gómez was assigned a lease of a one bedroom apartment in Egremont in November 2012. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Similar premises in Egremont with an extended lease were valued around £260,200. The average ground rent payable was £65 collected quarterly. The lease terminated on 15 July 2091. Having 66 years left we estimated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of expenses.